Joining Magherafelt Credit Union is the best decision you could take for your money. We accept new members of all ages who are living or working in the Greater Magherafelt Area.
What Is A Credit Union?
A credit union is a group of people, connected by a ‘common bond’ based on the area they live in, the occupation they work in, or the employer they work for, who save together and lend to each other at a fair and reasonable rate of interest. Credit unions offer members the chance to have control over their own finances by making their own savings work for them. Every credit union is owned by its members — the people who save with it and borrow from it.
Credit unions exist only to serve members — not to profit from their needs. Surplus income generated is returned to the members by way of a dividend and/or is directed to improved or additional services for members. Members’ savings are used to fund loans to other credit-worthy members of the credit union. So, the money in a credit union always remains in the local community or ‘common bond’ that the credit union serves.
How does a credit union work?
Members save with their credit union and create a communal pool of money available to be used for providing loans to other members. Interest charged on loans to members generates an income for the credit union. Any additional savings not lent out to members can be invested to return a further income to the credit union. From this income, the credit union pays any operational expenses. Any remaining income is referred to as the credit union surplus and funds the dividend paid on members’ shares and/or is directed to improved or additional services for members. Credit unions may also choose to pay a loan interest rebate, which is a refund of loan interest paid to all members who borrowed during the preceding financial year.
How are Credit Unions Different?
Credit unions are distinctly different to other financial institutions for a number of reasons. Each credit union is an independent, not-for-profit organisation that exists solely for the benefit of its members, not stock markets. Credit unions have members, not customers, and membership is open to people who have a unique ‘common bond’ with other members of the credit union. This can be based on the area the members live in, the occupation they work in, or the employer they work for.
Why Join Magherafelt Credit Union?
Members of a credit union enjoy many benefits, including:
No fees – Free Services – Convenience – Community Benefits
Top Ten Reasons:
- Member Owned:
Magherafelt Credit Union is owned by its members, for the benefit of its members.
- Community organisation:
We are part of the local community. We exist for people, not for profit and actively support the local community.
- Savings guarantee:
Your savings are fully secure. They are protected by the Financial Services Compensation Scheme (FSCS) (you can save up to a maximum of £10,000).
- Easy access:
You have easy access to your savings. You can withdraw some or all of your money whenever you want (provided they’re not pledged as security for a loan).
- Free life savings insurance:
Savings are insured at no direct cost to each eligible member. The insurance is paid in addition to the savings you hold at the time of your death.
- No transaction fees:
With us, there are no administration charges or arrangement fees, no hidden extras or nasty surprises. What you see is what you get.
- Free loan protection insurance to eligible members:
It means that, in the unlikely event of your death during the term of your loan, your dependents won’t have to pay the outstanding balance.
- Great value loan rates:
We offer loans from as little as 12.68% on a decreasing loan balance.
- Free Death Benefit Insurance:
Death Benefit Insurance (DBI) is a unique service and gives members and their family’s added security and relief from financial worry especially at the time of bereavement. The cover provides a one-off payment of £1,000 to help meet funeral costs in the event of your death.
How do I become a Member?
You can join Magherafelt Credit Union by calling into our office, in person during our opening hours or by calling the office on:
| Tel: 028 79631185 |
A member of our staff will then talk you through the application process, please bring in your Photographic Identification and Proof of address as detailed below.
Please note your account will not be opened until the application process is completed.
Adult Accounts:
Opening an account:
Once you have identified the appropriate credit union within your ‘common bond’, be that where you live or work, opening an account is straightforward and convenient. You will need;
Evidence of Identification:
- A current, valid Passport or,
- A current, valid Drivers’ Licence or,
- A current, valid National ID Card (for NI only)
Evidence of Address:
- A Utility Bill or
- A Local Authority Document or
- An Official Document for a Government Body or
- A Bank/Building Society Statement dated within the last three months
Once all the documentation is acceptable one of our staff will be happy to take you through the account opening process. (See additional information sheet)
Did You Know?
You can join Magherafelt Credit Union and apply for a loan on the same day, you do not need to have a track record of saving with us.
Juvenile Accounts (U16’s):
Whether it be opening an account for your new baby or getting your school going child to start saving, having a credit union account is one of the most practical things that you/they can do for their future. You never know, they might need that loan for college down the road!
The parent/guardian needs to bring the following:
- Parent/Guardian Valid Photo I.D. (e.g. Passport or Driving Licence)
- Parent/Guardian Proof of address (e.g. Utility Bill, Bank Statement, Credit Card Statement dated within the last 3 months)
- Child’s Long Birth Certificate
Withdrawals Process (for Juvenile accounts):
In order for a child of 7 and over to withdraw from their savings the child and the authorised parent (the parent who initially set up the account) must both be present and sign for withdrawals.
For children under 7, the authorised parent’s signature will suffice on its own, the child is not required to be present.
Nomination:
The credit union nomination is your opportunity to name the person or persons you wish to receive your shares and any insurance attached to them in the event of your death.
A properly completed, valid nomination means Magherafelt Credit Union can disperse up to £20,000 to the nominee/s immediately. Property in excess of £20,000 will require a Grant of Probate or Letter of Administration before excess funds can be released
Effective 8th January 2021
To complete or change your nomination, this form is available from a member of staff.
You may nominate one individual or several if you wish. You can also tell us how much you would like each nominee to receive if making multiple nominations. We will follow your wishes. Please note charities or similar bodies are not eligible to be nominees.
You must update your nomination if you marry, divorce or if the nominee dies before you.
Please remember that a valid nomination takes precedence over a will. Where there is both a will and nomination, Magherafelt Credit Union will act according to the nomination. Please ensure that both your will and nomination are consistent with your wishes.