Tel: 01 8858901 / 01 8306262 Fax: 01 885 8952
WHY SAVE WITH PRISON SERVICE CREDIT UNION LTD
- Withdrawal on demand and no waiting period
- Convenience of payroll deduction
- Competitive dividends
Savings & Shares
Why is saving with the Credit Union better?
Whether you're saving for something in the future or just for a 'rainy day', regular saving is a good idea.
Regular saving with your credit union is an even better idea. At your credit union, you're not just a customer, you're a member of a successful financial co-operative. Each share you hold in your credit union is equal to €1. Under the rules of your credit union you must have at least ten shares (€10) to be a member. Members enjoy equal voting rights (one member, one vote) and participate equally in the decision making affecting the credit union.
Each year at the annual general meeting (usually in December) the members present decide on a dividend based on the accounts for the year. This is the process whereby the members (owners) distribute the credit union's surplus among themselves. The surplus is the earnings of the credit union less its expenses and the setting aside of reserves. The dividend is calculated on each member's average daily balance over the year. The more you have in shares the greater your dividend.
As a shareholder in the credit union you also have the satisfaction of knowing that your savings are being used primarily to make loans to your fellow members and are your own stake in determining your own ability to borrow from the credit union.
SPECIAL SHARE ACCOUNT
This is the normal share account. DIRT is automatically deduction from your dividend at 41% (PER 2014 BUDGET). DIRT deducted from your dividend is paid directly by the credit union to the Revenue. You do not have to make any further declaration on your tax return.
MEDIUM AND LONG TERM SHARE ACCOUNTS
Special tax exemptions were given to "Special Term Accounts", however the Budget of 2013 abolished the opening or renewal of such accounts. As these accounts mature they automatically revert to Special Share Accounts and as such are subject to DIRT at 41%.
Are my savings secure?
Your credit union is financially sound. It has probably the highest reserves of any credit union in the country. The credit union has more than ample liquidity held in deposits. It has no risk related investments. The spread of investments with so many major banks minimises the possibility of any loss being sustained by the credit union in the event of the failure of any of these banks. The credit union is regulated by the Central Bank of Ireland. Your savings are guaranteed by the State up to €100,000 under the deposit guarantee scheme.
What return will I get on my Credit Union savings?
Each share you hold with the credit union is eligible for a dividend when declared. The dividend is declared each year by the members present at the annual general meeting. A dividend is the return on your shares and is paid by the credit union out of surplus. The amount of your dividend will depend on:
The amount of shares you have saved (one share is equal to €1)
The surplus income available for distribution by your credit union to members
Last year's dividend (2016) was 0.5%
Can I have easy access to my savings?
You can withdraw your savings provided they are not pledged as security on a loan. However, you are encouraged to keep your savings intact, so that:
- they continue to earn a dividend
- they continue to benefit from the Life Savings Insurance
- You maintain your credit worthiness and capacity to borrow
Your credit union will be happy to talk to you about suitable alternatives to withdrawing your savings.