Many people could benefit from joining a credit union, but their misconceptions could be preventing them from joining. We are going to debunk some of these credit union myths and hopefully reduce the confusion about credit unions.
Credit unions have strict eligibility requirements.
While there are eligibility requirements for joining a credit union, they are not as strict as you might think. To join Nottingham Credit Union, you only have to live or work in Nottinghamshire. Other types of credit unions may require you to be a member of a union, a church or have attended a certain university. It is very likely you are eligible to join at least one credit union. You can check which ones you can join here.
You may even be eligible to join our Payroll Pro scheme if you work for one of our payroll partners. This entitles you to exclusive rates and offers. Find out if you are eligible here.
Your money isn’t protected by insurance.
When you make a deposit into your Nottingham Credit Union savings account, your money is protected by the Financial Services Compensation Scheme (FSCS). Individual depositors are entitled to a claim of up to £85,000 and joint accounts up to £170,000. On the off chance that NCU or any other credit union in the UK was unable to meet its financial obligations; your money would be fully protected. Your money is just as safe in a credit union as it is in a bank.
They are unlikely to be around in ten years’ time.
Credit unions have existed in the UK since the 1960s and NCU was founded in 1992. It is unlikely that credit unions will disappear; in fact, they are growing in membership every year.
Credit unions do not offer rewards programmes.
This varies by credit union, but many do offer cashback rewards and incentives. NCU is now offering the Engage card, which is a prepaid debit card that can earn you up to 15% cashback at various retailers. You can find out more here.
The technology credit unions use is outdated.
Credit unions may not have as big of a budget as the banks, but their technology is still up to date. Online banking is easy with NCU and most other credit unions.
There are fewer places to withdraw your money.
You can easily withdraw money from your NCU savings account by BACs transfer either online or by phone. The Engage card can be used at any ATM and anywhere Visa is accepted. Most credit unions offer access to a large network of ATMs, so accessing your money is not a problem.
Credit unions are only for people who are low income or have bad credit.
Credit unions can be beneficial for people of all financial backgrounds. There are many benefits to choosing a credit union over a bank; we are able to avoid added on fees such as those for early repayment, so you may find that a loan with us would be more affordable. By saving your money with a credit union, you are also helping the local community by allowing someone else to borrow.
They are a good place to keep your savings, but not for much else.
Credit unions offer a variety of products such as loans with competitive interest rates and everyday banking. You may find that switching to a credit union is better for all of your banking needs as there are generally less fees.
Credit unions are an old, outdated concept.
In contrast, credit unions are quite a progressive concept. With shopping local becoming more and more popular, it only makes sense to bank locally as well. Making large corporations wealthier is really the outdated concept.
Opening an account is a difficult and lengthy process.
It is very easy to open an account at NCU. All you have to do is fill in an application form here. Just have your ID and bank details ready and you’re all set.