How credit unions serve members’ needs

WE HAVE just completed the first quarter of the new year. Did you at the beginning of the year pause and take stock of your financial realities? Did you also make plans and budgets for the way forward? If you answered ‘no’ to these two questions, then there is another chance to do it during Credit Union Financial Reality Month. Make sure you take the opportunity to learn something this month.

In planning for the future, this year, as credit union members, you are being encouraged to take the time to look at the range of financial services and products that are available to help you to achieve your goals. Here are some of the services and the ways in which your credit union can assist you.

PAYROLL DEDUCTION AND DIRECT DEPOSIT

This is a service provided by credit unions through an agreement with the member and his employer. The member’s savings are deducted by the employer and the money remitted to the credit union. This convenient service provides a safe and convenient way for members to save regularly and to repay their loans.

PERMANENT SHARE ACCOUNTS

This is the amount that a member will need to become a part owner of his or her credit union. This amount varies with credit unions. Once he/ she becomes a member by establishing this account, regular deposits can be made to a regular share account. Members earn dividends on shares, and when they save regularly, this helps to build credit rating in preparation for loans they may require.

DIVERSIFIED SAVINGS ACCOUNTS

Credit unions have a variety of savings products to suit members’ needs. It is important to note that all credit union members’ regular savings receive Life Savings Insurance. This means that when a credit union member dies, his beneficiary is able to collect his savings, with the added benefit gained through Life Savings Insurance. Conditions apply.

Term deposits/fixed deposits – Putting money in a credit union on Term Deposits is a good way to save towards major investments. Term deposits start from 30 days and go up to many years. Interest rates are competitive.

Golden Harvest Savings Plan – This offers credit union members the opportunity to set a specific savings goal and save towards this goal over a set period of time, to a maximum of 10 years. The goal is insured so that it is met even if a member dies before the goal is realised. The member’s beneficiary will benefit. Credit union members 16-65 years are eligible and there is no minimum savings goal. Golden Harvest savings receive automatic insurance coverage.

DEBIT CARD SERVICE

Credit union members can access their savings and do different transactions through the use of their Access Plus® Debit card at any Easi Access ATM or other ATM on the MultiLink Network or through Point-of-Sale purchases. It is a safe and convenient way to gain access to your money, and members who do not have one are encouraged to go into their credit unions and get one. The process is easy.

LOANS

Credit unions not only offer personal loans (furniture, cars), but also business, education, or other types of loans. Interest rates are competitive and loans are repaid on the reducing balance. As a result, payments are not burdensome.

Additionally, loans are protected by Loan Protection Insurance provided by CUNA Caribbean Insurance (Jamaica) the life insurance arm of the Credit Union Movement. Up to $600,000 of a member’s loan is protected. Conditions apply.

If the member dies with an outstanding loan, his estate will not be called on to repay the loan. This is what gives rise to the well-known credit union maxim, ‘The debt dies with the debtor.’

MONEY MANAGEMENT EDUCATION

Whether helping members save for retirement or to shop wisely, credit unions have a tradition of providing education for the membership. This is what Financial Reality Month is about. Credit unions will offer education on topics such as buying a car or preparing for retirement; provide publications that promote ways to manage money and use credit wisely. They will also advise members to curb spending problems before they become serious and negotiate repayment schedules with a member who has fallen into financial difficulties.