The Association of British Credit Unions Ltd (ABCUL) has reassured credit union members who may be concerned about the safety of their savings as financial turmoil among mainstream institutions continues.
Alternative financial services
A credit union is owned and controlled by its members who pool savings to offer low-cost and flexible financial products to members. Many credit unions now offer a range of services including a current account, benefits direct, ISAs and Child Trust Funds.
Credit unions do not rely on borrowing from other banks or the international money markets. This means that the current economic turmoil, which is causing worry for so many people at the moment, has no impact on the services credit unions offer.
Which? Money editor Martyn Hocking said: ‘As credit unions use the savings of their members to make loans to other members they are very self-contained institutions. They are therefore not influenced by the demands of external shareholders or short term fluctuations in share prices.’
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