Savings in a Credit Union are very important for two main reasons:

• To help the Member
• To help fellow Members

Firstly, as part of our philosophy of encouraging Members to manage their finances wisely, we recommend that they save something, even a small amount, on a regular basis, as this has the following advantages:

• You will build up a significant balance over time that YOU will own.
• You will be able to use this as collateral to access loans on competitive terms.
• You will benefit from our Life Savings Insurance Scheme that will increase the value of your savings in the event of death or permanent disability.
• You will benefit from the DBI (Death Benefit Insurance) scheme, which will pay out a fixed benefit of €2,600 towards funeral expenses in the event of death.
• You will receive an excellent return on your savings.

(As with all insurance schemes some terms and conditions apply. These are explained under Insurance Schemes).

Secondly, the savings, which each member holds, enables us to advance loans both to them and other members.

Summary Of Main Features Of Savings Accounts

Shares Accounts

Account / Product	Availability of Funds	Tax Treatment	Return	Insurance Benefits
Regular Shares	On Demand - Subject to loans.	No tax deducted. Fully taxable in the hands of Member at their marginal (highest) rate.	Dividend - not guaranteed - paid once per year in December.	Yes - up to €12,700 maximum across all share accounts and age of member when savings made.
Special Shares	On Demand - Subject to loans.	DIRT at 25% deducted from Dividend. - No further tax liability in the hands of member.	Dividend - not guaranteed - paid once per year in December.	Yes - up to €12,700 maximum across all share accounts and age of member when savings made.
Medium Term Special Term Shares Account	No withdrawal for 3 years from date of lodgement without penalty unless aged 60 or death.	Tax exemption of first €480 of dividend earned.	Dividend - not guaranteed - paid once per year in December.	Yes - up to €12,700 maximum across all share accounts and age of member when savings made.
Long Term Special Term Shares Account	No withdrawal for 5 years from date of lodgement without penalty unless aged 60 or death.	Tax exemption of first €635 of dividend earned.	Dividend - not guaranteed - paid once per year in December.	Yes - up to €12,700 maximum across all share accounts and age of member when savings made.

Maximum level of shares across all accounts - €30,000

 

 

Deposit Accounts

Account / Product	Availability of Funds	Tax Treatment	Return	Insurance Benefits
Super Saver Easy Access A/C	Available on demand.	Dirt at 25% deducted from Interest Earned.	See “What do I earn on my Savings”.	None
6 Month Fixed Term Account	Locked in for 6 months from opening of account.	Dirt at 25% deducted from Interest Earned.	See “What do I earn on my Savings”.	None
12 Month Fixed Term Account	Locked in for 12 months from opening of account.	Dirt at 25% deducted from Interest Earned.	See “What do I earn on my Savings”.	None
Medium Term Special Term Deposit Account	No withdrawal for 3 years from date of lodgement without penalty unless aged 60 or death.	Tax exemption of first €480 of interest earned.	See “What do I earn on my Savings”.	None
Long Term Special Term Deposit Account	No withdrawal for 5 years from date of lodgement without penalty unless aged 60 or death.	Tax exemption of first €635 of interest earned.	See “What do I earn on my Savings”.	None

Maximum level of deposits across all accounts - €75,000

Maximum level of deposits in individual accounts - €25,000

Please note that this is a summary of the main features only. Please enquire at the office for full details of the Terms & Conditions applying.

Which Account Is Best For Me?

This is a question to which there is no simple answer. In practice many Members hold more than one type of account to meet different needs. As a guide, however, the following may be helpful. Please note that this is intended merely as a simple guide and we recommend that you talk to one of our staff to work out the best plan to suit your needs.

The most important thing for me is to have insurance benefits and to be able to borrow when I need to.	Share Accounts may be the most suitable for you.
The most important thing for me is to be certain of what my savings will earn and get it more frequently than once per year.	Deposit Accounts may be the most suitable for you.
The most important thing for me is to minimise the tax I pay on what I earn on my savings.	The Special Share Account and Term Share, and Deposit, Accounts have special rules that can reduce the amount of tax due on what your savings earn.

 

 

Some Final Points

• Please note that evidence of your PPS number is required when opening a new account, even if you are an existing member, unless you have provided it previously.
• DIRT (Deposit Interest Retention Tax) must be deducted from interest paid on deposit accounts in most cases. The current rate is 25%. Two exceptions to this however are a) Where the a/c is a 3 or 5 year Special Term Deposit a/c and the amount earned has not exceeded €480 or €635, respectively, OR If you, or your spouse, are over 65 years of age and have a combined income not exceeding €40,000 in the current tax year, you may be entitled to claim an exemption from DIRT. Please enquire at any of the 3 offices.
• ALL earnings from your Credit Union savings are, in general, taxable and you should be aware of your obligations. Where you have DIRT deducted at source, from either a Share or Deposit Account, you have no further liability to income tax.
• Under legislation Credit Unions are required to make an annual return to the Revenue Authorities of amounts paid in excess of €635 to members in either Dividend or Deposit Interest. PLEASE NOTE THIS DOES NOT REFER TO THE BALANCE IN YOUR ACCOUNT BUT THE AMOUNT THAT YOU HAVE EARNED ON THIS BALANCE OVER THE YEAR.

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