These savings will act as collateral against your loan, but will also develop into a rather handy nest egg limiting the need to borrow in the future. Creating a better financial future for our account holders is incredibly important to us at Pennine Community Credit Union and encouraging better saving habits goes hand in hand in achieving that.
Recent research by the Fairbanking Foundation shows that 92% of survey participants found it “helpful” being able to save at the same time as paying off their loan. In addition to this 67% of ‘Save As you Borrow’ users who had no savings, and found it impossible to put money aside, now have plans to save regularly throughout the year as a result of the credit union ‘Save As you Borrow’ scheme.
As well as the save as you borrow scheme helping our account holders it also facilitates the way credit unions work. As although the money you save is secure in your account; behind the scenes we pool all the savings. It is from this common pool of savings that we issue loans at affordable rates to account holders. Choosing to save with Pennine Community Credit Union means that you are helping local people in your community. It’s literally people helping people.
Our scheme works by ensuring our account holders put a proportion of money in to their S1 savings account in addition to making loan repayments. For a standard loan we require a minimum of £5 per week, a family loan consists of £1 per week. This money cannot be accesses until the S1 savings balance is above the loan balance, when this occurs you can withdraw the difference. Otherwise these savings are made accessible once the loan balance is fully repaid.
Other than our S1 savings account we have a range of free to open savings account that you can make deposits into these include Christmas Savings account, Easy Access account, Young Savers. These account allow you to withdraw throughout the year at any time (excluding the Christmas club account whereby withdrawals are limited to November and December).