Savings

NOTICE FOR ALL OUR MEMBERS

How secure are your savings with Cavan Credit Union?

I'm sure you are aware that the Government guarantees the first €100,000 in any one person's account in certain banks and in ALL Credit Unions. So, there is safety in this against the total collapse of any credit union. Each credit union, including our own, is closely monitored by the Financial Regulator and I can assure you that, in spite of what happened in the banks, Credit Unions are constantly and closely monitored and indeed reminded of ratios and reserves which MUST be maintained.
Above all we are monitored for our solvency.(ie- if we closed in the morning what would happen to our members' shares (savings)?) Credit Unions operate under what are called PEARL RATIOS and the P stands for Protection. The League of Credit Unions recommends that a credit union should have at least 109% protection... this means that a credit union should be in an overall position to pay out €1.09 to a member for every €1.00 he or she has in shares (savings). In fact Cavan Credit Union's Protection Ratio is presently 114.9% ... this means that we are ahead of the recommended target by 5.9% and that we have €1.149 to cover every €1.00 held by a member in shares (savings).
Cavan Credit Union Ltd is currently professionally managed by two senior managers (General Manager and Financial Manager) as well as two junior managers. We also have a special department dedicated to the task of recovering loans. So a constant watch is kept on the day to day operation of the credit union offices. The Board of Directors meets every month to review the finances and operations. During the month various sub-committees of the Board meet and then report back to the Board. All Board members are voluntary and unpaid but are still subject to the same laws as a paid Board. The Board is in turn supervised by a Committee of three Supervisors who have wide ranging powers.
I hope that this has reassured you about the security of savings in Cavan Credit Union Ltd.

Chairperson

 

Opening an account with Cavan Credit Union

When you open an account with the relevant documentations, you will be given a receipt which shows your membership number, your lodgement details and the balance of your account. We refer to savings as shares so when you become a member, you become a share holder. Regular savings generates a surplus of income which is distributed to members in the form of lending.

Shareholders receive an annual dividend on their balance. The dividend is decided on at our A.G.M and is proposed by the members. It is added to each member’s account generally after the A.G.M. The A.G.M is normally held in December. Last year’s dividend was 2% and we hope this will increase in December 2009.

Members can have as many accounts as they wish. Members have the option of having two saving accounts under the one account number, a regular shares and a cash save account.

Members are obliged to pay dirt tax at the rate of 23 % per annum on the dividend they receive on savings.

Your money is available on demand in cash or cheque form and is fully insured at no extra cost.

We also have special term accounts, short & long term accounts attracting a rate of 2.50% per annum. The holder of the term account is allowed to earn a tax free dividend of €480.00 (short term) and €635.00 (long term). A lump sum lodgement is required and no further transactions are allowed for the term.

As a member you can nominate a person /persons to benefit from your savings account up to €23,000. The form is very simple to complete and can be changed or/cancelled at any time. This nominations form will ensure that, in the event of your death you’re saving account to a maximum amount of €23,000, will be distributed quicky and with minimum fuss to the nominee. Remember this is an unique facility available only to Credit Unions and could be described as a “Mini Will”

Money Boxes are now available at Cavan Credit Union.

Types of Share Account

• Regular Share Accounts
• Members present accounts with Credit Union are considered as a Regular Share Account. These accounts are suitable for those who are not liable for income tax.
• The onus is on the member to declare their account to the Revenue Commissioners.
• Dividend rate declared at A.G.M. is posted gross to members accounts.
• No disclosure is required by Credit Union.
• Special Share Accounts
• Member must request in writing that their account be changed to a special share account.
• Dividend paid to member net of DIRT.
• Return made by Credit Union does not include individual members details.
• Member can hold both a regular or special share account but not both

Special Term Account - 3 or 5 Year

Looking for a home for your SSIA Money or those  Lump Sum’s. Look no further Cavan Credit Union are now offering a:

3/5 Year Term Saving Account (2.5% Interest per annum)

Special Term Account Features

• The special term account offers a tax efficient savings option to Credit Union members, subject to certain terms and conditions
• Dividend or interest earned on these accounts is tax free up to certain limits.
• To qualify for the benefits funds must be left in the accounts for either three years (Medium Term) or five years (Long Term).
• There are tax penalties for early withdrawal.
• The holder  of a Term account is allowed to earn a tax free dividend of €480.00 (Short Term) and €635.00 (Long Term). Any dividend in excess of these amounts is taxed at the DIRT rate of 20%.
• Once DIRT has been deducted, no further Income Tax liability  on dividend or interest and does not have to declare it in an annual tax return.
• The Credit Union is required to submit a list to the Revenue Commissioners by the 31st March at the year end in respect of all Term Accounts opened in the proceeding tax year containing the name and address of the member, the date the account was opened and the type of account the member has opened.
• To qualify for the tax basenefits, funds must be left in the accounts for either 3 years( Short Term)  of 5 years (Long Term).
• There are tax penalties for early withdrawal of funds. Please note, that not all Credit Unions offer these accounts.
• This account would be in the form of a lump sum lodgement and the annual dividend must be withdrawn  by the member or a cheque for the amount will be forwarded to the member.
• Only one of these accounts can be opened  within the Republic of Ireland .
• Members must be over 16 to open this account.

Click here to download a copy of the Special Term Document

Security

• Credit union members can rest easy in the assurance that their savings are safe. Credit Unions in Ireland, which are affiliated to the Irish League of Credit Unions, are secured in several ways:
• All officials of credit unions, whether volunteers or staff, must be fidelity bonded.
• Savings up to a limit of €12,697 per member are protected by the Savings Protection Scheme in all credit unions participating in the Scheme.
• Members savings within certain limits are insured through Life Savings Insurance.
• All monies received in the credit union are properly recorded and lodged regularly.
• Full financial statements are prepared and can be examined by members.
• Annual independently audited returns are lodged with the relevant authority, The Irish Financial Regulatory Authority.