Savings

Whether you’re saving for something in the future or just for a ’rainy day’, regular saving is a good idea. Regular saving with Gorey Credit Union is an even better idea. At Gorey Credit Union, you’re not just a customer, you’re a member of a successful financial co-operative.

The credit union share is the most common form of saving in a credit union. Members are not issued share certificates denoting ownership of a share. A record of shares saved by a member is recorded in the members’ passbook, (counter tellers issue receipts for every transaction). Statements of transactions showing transactions over a required period are issued on demand.

Gorey Credit Union operates the following types of accounts:

1. The Special Share Account
2. The Regular Share Account
3. The Choice Account
4. Special Term Share Accounts which can help reduce your DIRT liability.

Savings in the Credit Union are protected under both the Savings Protection Scheme and the Government Deposit Protection Scheme.

The Regular Share Account

This is the traditional credit union share account. If you have a Regular Share Account, you have to declare the dividend you receive in your annual tax return and are liable to pay tax on it at your marginal tax rate. It is important to note that the Revenue Commissioners have the right to inspect the books and records of all financial institutions, including the credit union, with regard to individuals’ accounts.

The Regular Share Account may be of benefit to members who are exempt from tax, e.g. because their income is below the Income Exemption Limit.

The Special Share Account

The Special Share Account is the very same as the Regular Share Account in every way except that the members tax liability on the dividends earned is discharged by means of DIRT tax at the standard rate of tax. This can represent a saving to some members who would normally be liable for tax at the highest marginal rate.

If you have a Special Share Account, Gorey Credit Union will automatically deduct Retention Tax (DIRT) at 25% from any dividend that you receive on your shares. You have no further liability to tax on this dividend and you are not required to make any declaration to the Revenue.

Members whose marginal rate of tax is 41% will pay less tax with this option and will not have to declare their dividend in their annual tax return. Members whose marginal rate of tax is 20% will pay the same tax with either option but will not have to declare their dividend if they have a Special Share Account.

The Choice Account

The choice account is a new sub account offered by the Credit Union. Members retain the same membership but will see a new line on their receipts showing this Choice Account. Benefits include full access to the balance of your choice account ( even if you have a loan). Should you wish to have an ATM card it will operate from this account.

Savings Protection

Savings are protected in Gorey Credit Union under the following schemes:

• The Savings Protection Scheme of the Irish League of Credit Unions (subject to certain limits).
• Under the rules of your credit union, your confidentiality is protected.
• Also, members’ savings are insured through Life Savings insurance (subject to certain conditions). For more details, see the life savings protection section.

Savings Accessibility

Savings can be withdrawn from Gorey Credit Union during normal business hours at no charge, provided the savings are not pledged as security on a loan or a loan you have guaranteed. You are encouraged to keep your savings intact, so that:

• They continue to earn a dividend
• They continue to benefit from the Life Savings Insurance protection
• You maintain your credit worthiness and capacity to borrow

To make a withdrawal, members must present their passbook or some form of identification.

For security reasons, cash levels in the Gorey Credit Union are kept to a minimum, so large withdrawals in cash may require advance notice. However withdrawals can also be made in the form of a cheque.

Distributions (Dividend)

Every share you hold with Gorey Credit Union for the year is eligible for a dividend. A dividend is the return on your shares and it is paid by the Credit Union out of surplus. The dividend rate is approved by our members at our Annual General Meeting (which takes place on the first Wednesday of December) and lodged to your account for start of business the following day.

The amount of your dividend will depend on:

• The amount of shares you have saved (one share is equal to €1)
• The surplus income available for distribution by your credit union to members