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Is it worth moving savings from bank to credit union?

  • 31-01-2021 8:31pm
    #1
    dorothylives
    Registered Users, Registered Users 2 Posts: 414 ✭✭


    I was thinking of opening a credit union account since I have some savings in a bank account essentially earning 0% return. Having looked at the credit union site it says 'Every year we pay an attractive dividend on our members savings.' Does anybody have a credit union account, and would you be able to give some indication about what return I would get if I opened a new account with the maximum amount of 10,000euro?

    Thanks for any info.


Comments

  • #2
    mosii
    Registered Users, Registered Users 2 Posts: 332 ✭✭mosii


    most are down to almost zero,hard to make interest any where now. :rolleyes:


  • #3
    Spocker
    Moderators Posts: 6,900 ✭✭✭Spocker


    If the credit union you are opening the account with have a cap on savings of €10,000 it's highly unlikely you would get a dividend. The Central Bank have advised Credit Unions not to pay a dividend or loan rebate this year


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    dorothylives wrote: »
    I was thinking of opening a credit union account since I have some savings in a bank account essentially earning 0% return. Having looked at the credit union site it says 'Every year we pay an attractive dividend on our members savings.' Does anybody have a credit union account, and would you be able to give some indication about what return I would get if I opened a new account with the maximum amount of 10,000euro.

    No two credit unions are the same, have you tried looking at the most recent annual report for that credit union? It should knock that 'attractive dividend' nonsense you read in their sales pitch.


  • #5
    Davauer
    Banned (with Prison Access) Posts: 27 ✭Davauer


    The interest you earn on your savings is subject to deposit interest retention tax or DIRT. The rate is currently 37%.
    https://www.bonkers.ie/compare-savings-accounts/your-results/


  • #6
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    In my CU it's been a max of 0.1% (one tenth of a percent) before the DIRT for the last couple of years. It costs credit unions to have your money on deposit and many of their larger investments of members' funds are on negative returns. By all means leave it there for the community spirit element etc. but you might get a marginally better return (although still pretty low!) from one of the banks on a fixed term or e-saver product.


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  • #7
    Q&A
    Registered Users, Registered Users 2 Posts: 571 ✭✭✭Q&A


    Davauer wrote: »
    The interest you earn on your savings is subject to deposit interest retention tax or DIRT. The rate is currently 37%.
    https://www.bonkers.ie/compare-savings-accounts/your-results/

    I fully appreciate no one will be going loco down in Acapulco as a result of this earth shaking clarification but for the record DIRT is 33% for 2020 & 2021.

    https://www.citizensinformation.ie/en/money_and_tax/tax/tax_on_savings_and_investments/deposit_interest_retention_tax.html


    [Deleted User] wrote: »
    By all means leave it there for the community spirit element etc. but you might get a marginally better return (although still pretty low!) from one of the banks on a fixed term or e-saver product.

    As an alternative to Irish banks you could try Raisin. Tge banks on that platform offer much better rates.
    https://www.raisin.ie/savings-accounts/


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