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Tel: 020 7561 1786    |    Fax: 020 7272 8192    |    Email: info@credit-union.coop

Ethical Savings

Community Investment is a way of using some of your savings to benefit the community with the Credit Union. The Credit Union is a co-operative formed on the basis of mutual self help rather than charity.  It encourages saving rather than borrowing, with the savings being pooled and “reinvested” into the community in the form of low cost ‘Saver Loans’. These low cost loans can then be accessed as an alternative to high interest credit used by less advantaged people in our community.

Ethical Savings

Community Investment is a way of using some of your savings to benefit the community with the Credit Union. The Credit Union is a co-operative formed on the basis of mutual self help rather than charity.  It encourages saving rather than borrowing, with the savings being pooled and “reinvested” into the community in the form of low cost ‘Saver Loans’. These low cost loans can then be accessed as an alternative to high interest credit used by less advantaged people in our community.

 Why should I Save with Community Investments?

For many people, the ability to borrow money can make the crucial difference in being able to replace a broken cooker, fridge or simply being able to buy the school uniforms. More and more people are having to take out loans and a lack of options means that they are often forced to turn to high interest providers. With some well-known payday loan companies charging APR’s of 7,000%, these loans cost people a fortune and often leaves people unable to buy basic foodstuffs.

Access to the Credit Union’s low cost credit is essential for such people. Our ‘Saver Loan’ is lent at a rate of just 12.7%apr on the reducing balance and greatly reduces the costs of borrowing for some of society’s poorest members. Recent financial analysis concluded that for every £1 we lend to members, they save a full £1.25 over the course of a year in interest payments, bank charges and fees.

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How does the ‘Saver Loan’ help people in the long term?

When someone takes out a ‘Saver Loan’ with the Credit Union, part of their repayments are allocated to a savers account which they cannot access until the loan is repaid. In this way, over time, members move from being borrowers into being savers and are more likely to build up the savings necessary to overcome problems themselves when they arise.

How much does it cost me?

It costs nothing to make a Community Investment. The money you invest remains your money and can be withdrawn on demand, normally within 5 working days. Savers are also paid an annual dividend on their savings which is a distribution of surplus in the lending business.

Is my money safe?

Your savings with the Credit Union are protected under the Financial Services Compensation scheme (FSCS). This guarantees repayment of savings of up to £85,000 per person if the Credit Union were to fail. The FSCS will automatically compensate savers without their having to apply. The FSCS aims to compensate the majority of savers within seven days and pays any remaining claims with twenty working day

The benefits of your investment

£5000 invested in our ethical savings plan:

after 1 year

The value of your investment to the community is

£6,250

After 2 Years

The value of your investment to the community is

£12,500

after 3 years

The value of your investment to the community is

£18,750

Making deposits into your Credit Union account.

Standing Order & Bank Transfer

These payment methods are suitable for one-off deposits and/or recurring payments into savings from your bank account.
The easiest way to set up a Standing Order is to use online banking or to contact your bank.

You must use your membership number (or NI Number) as the reference for every payment.

Bank Name:
Co-operative Bank

Sort Code:
08-92-50

Account Name:
London Capital Credit Union
NB Some banks may say account does not match the name because our full name, London Capital Credit Union Ltd., is too long. You can ignore the error message and use these details.

Account Number:
67003299

Reference:
Your credit union membership number or your NI number in order that we can credit the payment to the correct account.


Salary Savings Schemes

Many people can make regular savings deposits or loan repayments directly from salary. CLICK HERE to access the Online Salary Savings Schemes Form.


Cash

We only accept cash for initial deposits. If you make your first deposit by cash the maximum we can accept is £50.


Cheques

Cheques should be made payable to ‘London Capital Credit Union’ or payable to yourself. We can also accept cheques payable to yourself. You should note that it will take at least 12 working days before you are able to draw on funds paid in by cheque.

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