Top 10 Credit Union Myths

 

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. The technology credit unions use is outdated.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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

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25 Ways to Start Saving Money Today

Budgeting and saving money can seem like a daunting task, but it doesn’t have to be. Here are is list of small changes that you can make that will save you a lot in the long run:

  1. Set money aside without having to think about it. Make regular contributions to your Nottingham Credit Union savings account by standing order or from your salary (if you work for one of our employer partners). Before you know it, you’ll have saved up a fair amount of money without ever realising it had gone.
  2. Switch energy providers. You can find the cheapest deal with Money Saving Expert’s Cheap Energy Club.
  3. Unplug appliances when they’re not being used.
  4. Use comparison shopping sites like http://www.mysupermarket.co.uk/ to find the best deals for your weekly food shop. You can compare individual items across stores to see which one has the lowest price at any given time.
  5. Take advantage of supermarket loyalty cards like the Tesco Clubcard and Sainsbury’s Nectar Card that allow you to earn points and vouchers.
  6. Buy food in bulk and store it in the freezer to get lower prices and avoid waste. You can find a list of freezable foods here.
  7. Use a slow cooker to prepare meals for the week instead of eating out. It’s cheaper than using the oven and you can leave it on while you’re at work to come home to a freshly cooked hot meal.
  8. All of those meals out with your friends can start adding up. Instead of going to a restaurant, take turns cooking for each other or have a potluck. It costs a lot less and can end up being more fun!
  9. You can also save a lot just by taking your own lunch to work instead of eating out. Just set aside a few minutes the night before or in the morning before work.
  10. Invest in a reusable water bottle rather than buying bottled water.
  11. Buy store brand instead of name brand. Often times you can’t taste the difference and it can end up saving you a lot in the long run.
  12. Make your own beer and wine. You can buy a kit at Wilko’s for as little as £10 for 40 pints. Not only is it 25p per pint, but it’s also fun to make as well.
  13. You can also grow your own herbs as opposed to buying them as you need them. A basil plant from Sainsbury’s costs £1.50 and keeps growing back, whereas a bunch of fresh basil costs 80p and will go off in a few days.
  14. Take advantage of reward cards like our prepaid card that offers cashback at many national and local retailers.
  15. Check to see if your children are entitled to any benefits such as free meals or school uniform.
  16. Do your holiday shopping right after the holidays when everything goes on sale. You may not want to think about Christmas in January, but it will save you money later in the year.
  17. Buy presents in advance during seasonal sales. The recipient will never know you got a discount on it and you won’t have to worry about finding a gift at the last minute.
  18. Exercise at home instead of paying for a gym membership. There are plenty of workout videos you can watch for free on Youtube on channels such as PopSugar Fitness and GymRa.
  19. Youtube is great for learning how to do all sorts of things. You can save money by doing things yourself instead of paying someone, such as cutting your own hair.
  20. If that sounds a bit intimidating, you can always go to a beauty school to get your hair done at a discount or even for free.
  21. Sell old mobiles and electronics for cash by finding the best deal on http://mobilevaluer.com/.
  22. Sell things you no longer need on Ebay and get good deals from other sellers on things such as clothing and home goods.
  23. Take advantage of free trials such as Amazon Prime and Netflix, but don’t forget to cancel them before the trial period is over!
  24. Quit smoking. You no doubt know the health impacts of smoking but it could be burning a hole in your wallet too.
  25. Avoid payday loans – come to us instead for competitive interest rates regardless of your credit history.
Categories: BLOG.