Is it necessary to obtain approval from the Credit Committee for share withdrawals?
Your shares in the Credit Union are an investment and the Credit Committee has to keep a trace of all the Share Withdrawals
Does the Credit Union operate joint accounts?
The Credit Union does not operate joint accounts, but there is a beneficiary to the account. In the event of member’s death the value of shares is paid or transferred to the beneficiary
If I am the beneficiary to the account, why can’t I have access to the account (receive balances /operate the account)?
In order for the beneficiary to operate the account the member has to provide a legal document (Power of Attorney) to the Credit Union
What is the difference between a Share account and a deposit account?
In order to become a member Shares must be purchased. A Share account generates dividends and is held as collateral for a loan. The deposit account can be used as a current account to conduct ordinary transactions. This account does not generate any dividends
How can I qualify for a loan?
Within three (3) months of becoming a member at the Credit Union an applicant will receive a loan of one hundred percent (100%) of his or her share holding. After three months of membership, character loans are extended up to 1 3/4 times the applicant’s share holding or the applicant’s share holding plus two hundred thousand dollars ($200,000.00)
On which account would I receive more interest, shares or fixed deposit?
The average dividend on the shares account is 4.75 % whilst the interest on fixed deposit varies from 2.25 % – 3.75 % depending on the amount and the duration
How often do I get dividends on my account?
The financial year is from January-December. During the first quarter of the following year, dividends is proposed and generated for the previous year, it is then agreed upon at the Annual General Meeting by the membership.
Is the interest on the loan the same as the arrears on the account?
Interest on loan is the fee charged by the Credit Union (lender) to the borrower (member) for the use of borrowed money (loan). The rate of interest on all loans is one percent (1%) per month on the remaining balance. A loan goes in arrears as soon as a payment (instalment), in whole or in part, is missed without a waiver being granted prior to the payment due date
Can I withdraw from my shares after I take a loan?
You can only make a withdrawal if the balance of your share is greater than the balance of your outstanding loan. If this is the case, you would be able to withdraw the difference between the two balances
What is the maximum amount of money I can deposit without completing a Source of Funds Declaration Form?
A Source of Funds Declaration Form must be completed for all deposit transactions in excess of the Credit Union’s threshold and is required to be done at the time of making payment. Large deposits within a short period are also questionable and a source of funds declaration form should be completed.
Note: The organization has the right to ask any member conducting business transactions at the Credit Union to fill out a Source of Funds for any amount of funds.
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