Rathkeale & Districk Credit Union
FAQ
What are the operating principals of Credit Unions?
What is Life Savings Insurance?
What is Loan Protection Insurance?
What is a Credit Union?
A credit union is a democratic, financial co-operative owned and controlled by its own members. Each credit union is run only to benefit its members, all of whom have something in common – the common bond.
Who owns a Credit Union?
The members of each credit union own each individual credit union.
Who runs a Credit Union?
A voluntary board of directors, elected by the members at the annual general meeting run each credit union.
Who regulates Credit Unions?
Credit Unions are regulated by the Financial regulator, through the Registrar of Credit Unions. Every credit union has an appointed supervisory committee whose role is to protect the interests of members. Credit unions are governed by the 1997 Credit Union Act. Credit unions are also independently audited every year. The audited accounts are distributed to all members and are presented for approval at the annual general meeting.
What are the Operating Principals of Credit Unions?
There are 10 guidelines founded on the philosophy of co-operation, equality and self help:
These include:
- Open & voluntary membership .
- Democratic control – all members have equal rights.
- Permanent equity capital where it exists in the credit union receives limited dividends.
- Limited dividends on equity capital.
- Return on savings & deposits- a fair rate of interest is paid on savings & deposits.
- Return of surplus to members.
- Non discrimination in race, religion, and politics.
- Service to members – improving services to members.
- On-going education – promotion of education of members, officers and employees.
- Cooperation among cooperatives – cooperation with other credit unions at local, national and international level.
- Social responsibility – advocating social justice and development.
What are Shares?
Every €1 saved is equivalent of 1 share in a credit union. A minimum saving of 5 shares (€5) is needed to keep an account open. You should save regularly to build up a savings history. Each share is eligible for a dividend at the end of the year. The more savings held by the credit union, the more funds are available for loans to members.
What is Life Savings Insurance?
Life Savings insurance is a life assurance benefit which is based on the amount of savings made and retained during a member’s lifetime. Once earned the cover remains in force, as long as the savings are not withdrawn.
The amount of benefit o which a member is entitled is in proportion to the amount of savings a member has and depends on the member's age at the date of lodgement. A member is entitled to this cover if when he/she saves the member is under 70 years of age and actively at work or, if not working, in good health. The maximum benefit payable is €10,200.
What is Loan Protection Insurance?
Loan Protection cover is a life assurance benefit designed to clear the outstanding loan balance on the death of a member it also includes an element of permanent disability cover.