Let’s us start with the basics, it’s not always easy but it’s good to save! Having even a small pot of savings can help when unexpected expenses pop up, a special occasion or holidays appears on the horizon or just to provide a little bit of peace of mind. However saving at a credit union like PCCU also means you are supporting other members of your community.
I want to support my local community
The co-operative credit union model is pretty simple, it provides a safe place for people in the community to save. Behind the scenes the credit union pools those savings, and from that common pool of savings it allows people from your area to access affordable loans. The interest that those loans generate pays for the credit union to operate and the remaining profit is paid back to account holders in the form of a dividend.
How do I know my savings will used to help people in Cumbria?
Before the merger PCCU held £11.5million in collective savings and lent around £6.5millon to members. Cumbrian members should feel comfortable that the money they save, will be used in your community to offer an alternative to high interest lenders or profit-driven banks.
Our free Life Savings Insurance is an integral part of PCCU’s member commitment. Life Savings Protection provides a member’s family with a single lump sum payment to help cover end of life expenses, in the event of a member’s death. Depending on age of deposit, this would mean that your savings, up to £5,000 could be doubled in the event of your untimely death. Members of staff will be able to answer any questions regarding the savings insurance and there is more information available here. Members are asked to nominate who they would want their savings and insurance to be paid to.
Want to support your community and make a return on savings?
Receive a share in the profits PCCU makes in the form of a dividend, although we cannot say what dividend rate we will pay next year, now you are a PCCU member you will receive a dividend on your savings and we have paid a dividend every year. Pennine’s financial results in recent years have allowed us to pay a 1% dividend on savings, you can find more information on the dividend and the rates we have paid over the past 8 years here.
We also regularly pay a loan interest rebate. Pennine’s financial results last year allowed us to pay a 6% rebate to borrowers.
How does that compare with other instant access savings accounts?
1% on savings is impressive when you look at the alternatives on the market. According to the ‘Money Statistics February 2021′ the average interest rate from an instant access savings account was 0.06% in January 2021.
PCCU is proud to be a not-for-profit co-operative, not only do we succeed annually to provide a dividend to our account holding members – we also support good causes with charitable donations. This year due to coronavirus and the inability of many charitable organisations to fund raise, PCCU members voted at the AGM to supported local organisations with £8,500 worth of donations.
PCCU is part of the Financial Services Compensation Scheme (FSCS) which protects your deposits with us. It is the body which gives you automatic protection up to £85,000 if your bank, building society or credit union goes out of business; and you will normally get your money back within seven days.
Still not sure if you should save with PCCU?
We are regulated by same governing bodies as the banks and building societies, we have various ways to deposit and withdrawal (you can find out more here), the ability to transact with your account via telephone banking, 24/7 online accounts area and the secure mobile Nivo app – but simply we provide a safe place to save and those savings allow our neighbours in the community to access affordable loans.