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You and your money
The recent banking crisis caused lots of us to look closely at where our savings were invested. People started asking questions about how the banks and building societies were using our hard earned money.
They wanted to know that those they trusted with their savings were also "responsible lenders" that treated their customers fairly and did not seek to grow too quickly by making excessive loans and mortgages that borrowers would struggle to repay.
Many were also relieved to learn that the Government's Financial Services Compensation Scheme protects their deposits, covering 100 per cent of the first £50,000 of savings held in each separate institution.
The strange turn of events in the banking sector has also led many more people to discover credit unions. These are co-operatives set up and run by people who all live or work in the same community, to provide each other with good value financial services.
Members of the credit union save together and these savings are then available to give out as affordable loans. The credit unions are there to help their members, not make big profits out of them.
And because they don't have shares quoted on the stock market, and are not allowed to speculate with their members' money, they have been relatively sheltered from the recent troubles.
The bigger credit unions now offer an amazing range of products, including instant access, loyalty, children's and Christmas savings accounts, with lots of handy ways to pay in deposits.
They offer various types of low-cost loan, all based on the member's proven ability to repay.
Some even offer bank accounts and insurance plans.
Visit www.hullandeycu.co.uk or www.abcul.org to find out more.
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