The primary reason people join together in a credit union is to save regularly. Their savings when combined with those of the other members create a fund of savings from which members can borrow whenever they have a need. To reflect the co-operative nature of the credit union these savings are called shares.

Savings are essential for the effective functioning of the credit union. Saving money is not easy, but the credit union encourages you to develop a habit of saving small sums on a regular basis. Once you develop this routine, saving becomes a relatively painless experience. It is surprising how quickly regular small sums build to a sizeable nest egg, and every year a small dividend is added to your savings (usually around 1 – 1.5%).

Most members have experienced the satisfaction and sense of well being at having sufficient credit union savings built up when an unexpected need of one kind or another crops up.

Your savings at the credit union may be withdrawn at any time unless they have been pledged as security for a loan, but members are encouraged to consider their shares in the credit union as life savings. Members will usually be advised to retain their savings unless a withdrawal becomes absolutely necessary.

Your shares in the credit union: –

Establish the amount you may borrow from time to time.
Create the general pool of savings from which all members may borrow.
When advising you the credit union will always consider what is best for your situation. In most cases the recommendation will be to retain your savings and take out a loan with repayments tailored to your personal financial circumstances. In all cases the final decision will be yours.