Start the New Year with a credit union savings scheme

Christmas leaves most of us with a hangover – and not just because of the booze. We can end up paying for Christmas well into the New Year, which can be a real downer after so much fun. That’s why ABCUL – the Association of British Credit Unions – is urging people to plan ahead in 2008 and start saving now for next Christmas.

“A lot of people might not realise that credit unions offer a great range of safe and easy savings schemes for all sorts of needs, including Christmas, as well as low cost loans,” says Mark Lyonette, Chief Executive of ABCUL. “Like banks and building societies, they offer the back up of the Financial Services Compensation Scheme and, with an ABCUL credit union, life insurance cover is included at no cost.

“All we’re saying is that you don’t have to build up bumper bills and dodgy debts to pay for Christmas – just putting a few pounds a week in a safe and easily accessible savings account could make a huge difference.”

Because credit unions are owned and controlled by their members, they only exist to serve their needs. Credit unions keep money within a community, because there are no outside shareholders to pay, and those who invest in a credit union know that the only people who are benefiting are their neighbours or colleagues.

A dividend is payable on members’ savings, and membership of the Financial Services Compensation Scheme means that, in event of a credit union failing, savers will be compensated. The FSCS will repay 100% of the first £35,000 in credit unions, which is the same as for banks and building societies.

The introduction of the Credit Union Current Account earlier this year is helping many more people to access banking services for the first time and to manage their money better. Charges are upfront and transparent, and there are no overdraft facilities, meaning people are less likely to get into trouble financially.

ABCUL also supports the Office of Fair Trading’s Save Xmas campaign, a consumer education campaign to help consumers decide how best to ensure they can afford to pay for Christmas.

To find out more about credit unions and to get contact details for one in your area, visit abcul.coop.