Worth saving with Credit Union?

Gael23

I have about 2k in my CU account earning exactly 0% interest. I dont add very much to it as it pays no interest but I know having it could be handy for loans in the future etc. But im thinking it woukd be better off in the post office earning 3-4%?
Is it wiser to go for the higher interest option or have a good savings record with the CU?

marketty

I'm in a similar situation, have 2k in the credit union and am just finishing off a loan with them at which point I can withdraw the 2k. To be honest I think I'd rather leave it there. Yes I could earn a little interest elsewhere but by keeping it in the CU I can get another loan handy enough if needs be. they've been great with my last two loans, and good interest rate on loans.
I will however be starting regular long term savings in a bank to avail of interest, although the amount earned will still be pretty small until I accumulate at least 5k-ish and then lock that into a fixed term account.
I'd basically treat that 2k as a 'key' to getting a convenient short term loan of a couple of thousand if needs be. I think missing out on the small amount of interest it could be earning is worth it for the sake of 'keeping in' with the CU.
Of course all this depends on the financial state of your CU, mine is doing ok but some are denying loans to even their best customers, in which case all I've said is moot!

trad

Do you know any other institution that will lend you money and welcomes borrowers?

3% or €2K is €60 a year. What would you get for your 60 bucks?

Keep in in the CU. You never know what's around the corner.

billyhead

ryanf1 wrote: »

I have about 2k in my CU account earning exactly 0% interest. I dont add very much to it as it pays no interest but I know having it could be handy for loans in the future etc. But im thinking it woukd be better off in the post office earning 3-4%?
Is it wiser to go for the higher interest option or have a good savings record with the CU?

Do you not ear dividends per annum on your savings. I have 6k in the credit union and am considering moving it elsewhere if this is not the case. I was told it accumulate dividends every year. Does anyone know if this is true?

Gael23

billyhead wrote: »

Do you not ear dividends per annum on your savings. I have 6k in the credit union and am considering moving it elsewhere if this is not the case. I was told it accumulate dividends every year. Does anyone know if this is true?

Most CU's are not paying dividend at the moment because they have so many bad debts. When I opened that account in 2004 it was paying 4% dividend!

wmpdd3

My credit union hasnt paid a dividend since Oct 2008, my brother's has paid every year. Luck of the draw. I choose my Credit union because it had a free carpark beside it, my brother's is in town!!

badgerbroc11

290 credit unions paid dividends last year. 2k @ 4% less 30% DIRT would pay out 56 euro net interest. (Can you get 4% on small amounts). My cu has savings and death benefit insurance included as part of membership. They've helped me out with loans also, so for me it's definitely not worth moving.
I went to our agm for the first time last year and it was interesting to see how I could have a say in it's running

monkeypants

I've had my CU account for a short time. They paid me a dividend of €0.24 at the end of last year. Michael Noonan helped himself to €0.06 of it. Hope he chokes on it. :rolleyes:

pawrick

I still get a dividend with mine, I had checked to see if different accounts would be better but is wasn't worth moving with lock in periods etc. cu is more accessible for me but depends on your situation, which cu you are with and how much you have.

Halo Kitty

Our Credit Union has not granted a dividend for the past 3 yrs, at this rate i am losing out on money due to loyality... They were always there for me when i needed a loan and no bank would help....

lotsofthegreen

monkeypants wrote: »

I've had my CU account for a short time. They paid me a dividend of €0.24 at the end of last year. Michael Noonan helped himself to €0.06 of it. Hope he chokes on it. :rolleyes:

do you think he'll eat it?