Credit union savings protection

powerfarmer

Hi all,
I have a query about the safety of money deposited in a credit union.
If the credit union were to collapse. Will the members get all their money back or what happens?

Ogham

Nothing is guaranteed.Some Credit Unions have a discretionary savings protection scheme in place if they go bust. Only if they ar in the Irish League of Credit Unions -
Quote from the ILCU
“The Savings Protection Scheme protects the individual savings of members by making sure that the credit unions are financially and administratively sound and by providing remedial help to any credit union which shows signs of weakness in these areas. Participation in the Savings Protection Scheme does not confer any legal right on a credit union to receive any financial assistance under the Scheme. Provided assistance is given under the Scheme the savings of individual credit union members may be protected up to a maximum of €12,700″

Personally I would prefer to put my money in a bank or even under the mattress.

kaiser sauze

A Credit Union would be a far safer place right now.

That banks have been practicing reckless lending for years whereas Credit Unions make loans available based upon their deposits and your ability to repay.

mealone42

powerfarmer wrote: »

Hi all,
I have a query about the safety of money deposited in a credit union.
If the credit union were to collapse. Will the members get all their money back or what happens?

IMO Credit Unions are not safe. They are usually run by amateurs with banking aspirations, reminds me of Traffic Wardens who are failed copper applicants. LOL

Compushed

mealone42 wrote: »

IMO Credit Unions are not safe. They are usually run by amateurs with banking aspirations, reminds me of Traffic Wardens who are failed copper applicants. LOL

Possibly, but some credit unions would put some of our major banks to shame in certain areas.

I'm thinking of Stillorgan CU's website and accessability vs say, Bank of Ireland.

galwaybabe

kaiser sauze wrote: »

A Credit Union would be a far safer place right now.

That banks have been practicing reckless lending for years whereas Credit Unions make loans available based upon their deposits and your ability to repay.

The Credit unions invest approx 60% of savings into shares, bank shares to be exact

Anyone

galwaybabe wrote: »

The Credit unions invest approx 60% of savings into shares, bank shares to be exact

Can you provide any evidence of this, or did you just pull the figure out of the air?

redroar1942

I think it's slightly higher but will come back with the exact figure.

Credit unions in general have far higher percentages of bad debts then banks. Granted they are generally for smaller amounts. I honestly hide the money around the house then put it in a credit union.

kaiser sauze

The scaremongering replies in this thread are a microcosm of the potential impact of ridiculous advice in relation to deposits in financial institutions.

Your money is always safer in a Credit Union than a Bank.

Banks commonly take measured risks, however, lately they have overexposed themselves. No matter what silly things the Banks did, until recently, you had €20,000 protection for any Irish registered institution. Some of the foreign operators provided more, based on their Central Banks' schemes.

Credit Unions, on the other hand do not take risks. Most of their customers' deposits are extended in the form of loans to members. Credit Unions are mainly only lenders of small amounts, and don't have the huge mortgage exposures of Banks.

Much of this is immaterial, since the Irish Government has guaranteed deposits of up to €100,000 last weekend.

Bottom line, nothing has changed, Credit Union is the better, safer place for your money, but with the guarantees, its really a non-issue.

Can we stop the silly scaremongering?

Cantab.

kaiser sauze wrote: »

The scaremongering replies in this thread are a microcosm of the potential impact of ridiculous advice in relation to deposits in financial institutions.

Your money is always safer in a Credit Union than a Bank.

Banks commonly take measured risks, however, lately they have overexposed themselves. No matter what silly things the Banks did, until recently, you had €20,000 protection for any Irish registered institution. Some of the foreign operators provided more, based on their Central Banks' schemes.

Credit Unions, on the other hand do not take risks. Most of their customers' deposits are extended in the form of loans to members. Credit Unions are mainly only lenders of small amounts, and don't have the huge mortgage exposures of Banks.

Much of this is immaterial, since the Irish Government has guaranteed deposits of up to €100,000 last weekend.

Bottom line, nothing has changed, Credit Union is the better, safer place for your money, but with the guarantees, its really a non-issue.

Can we stop the silly scaremongering?

derry

Cantab. wrote: »

Once opon a time there was three little investors deep in the dark and forboding forest saw the little red riding hood financial advisor
The little investors put their money into different investments namely stocks shares pensions housing morgages banks and derivitives the lot but each little investor would chose a slightly differnt mix of investments

However in the dark forest when the back of the feasting investors was turned the little red riding hood turned into the big bad wolf
With a big stir of the pot of teetering financial scams that he headed he made investment start to collapse in a planned fashion

Two lillte investors started paniking and changing funds and all sorts of tricks to get ahead of the curve
The other litte investor a bit ahead of the curve seeing that the top was reached had sold out of all investments and put all his money in cash under his bed and bought a small house to keep costs low in case his job went south

And the big bad wolf stirred the finacial pot and no mater where the other small investors put their money they lost out as banks credit unions and everthing financial went down the plug hole
The government garentees E100,000 euros were honoured and can be collected in the year 2020 when inflation has made the 100,000 worthless
Then the big bad wolf knowing that some would be ahead of the curve had his hench men go around breaking into houses and finding and stealin all money under the bed
Then the big bad wolf came knocking on the doors of the pennyless unemployed ex investors demanding housing tax

When they couldnt pay up he would huff and puff and call in the sheriff to conficate all the houses made from bricks and wood and straws

So the moral of the story is the big bad wolf 1% of the elite that own 90% of everything will come out of this melt down owning 95% of everything and the little investors will be on skid row on the bones of the arse fighting tooth and nail and scrapping for work at minium wages

I should know I sold life assurace 25 years ago saw it was some sort of con job and left that industry

Really wake up there was 20 workers to support 1 retired worker in 1940
In the in19 70 era there was five workers to support 1 retired worker
in 2020 there will be 2 workers to support one retired person

It wont work so total and complete melt down is required to ensure all saving are wiped out and then ground zero will build up a new regime that wont allow saving only slavery

The mantra from the regime "Can we stop the silly scaremongering?" as it wont do you any good as the die is set and the plebs not in the 1% of the elite will lose out big time

Derry