A credit union, in plain English.
Credit unions aren't banks. They're co-operatives, owned by the people who save with them. Here's what that means in practice.
Owned by its members
There are no outside shareholders. Every saver and borrower is a member-owner with one vote at the AGM, regardless of how much they have saved.
Savings turn into loans for neighbours
The pound you save with us is lent to another Manx household — a tradesperson, a parent, a pensioner. The money stays on the Island and gets reused.
Surplus may come back as a dividend
After we cover operating costs and the regulatory reserve, any surplus may be returned as a dividend on share accounts. A decision on any dividend is taken and announced at the AGM.
Licensed and protected
We're licensed by the Isle of Man Financial Services Authority under the Credit Unions Act 1993. Savings are protected up to the £15,000 maximum balance by cash reserves held under an FSA-approved arrangement.
How the money flows.
- 01
You join and save
£10 to open your account. £5 of that buys you a share in the union and starts your savings balance. You add to it whenever you like — by standing order or in person.
- 02
Members borrow from those savings
Other members apply for loans. Our underwriters review the application and the loan is funded from the pool of member savings. Interest charged is the union's income.
- 03
Surplus is voted into a dividend
At year-end we pay operating costs and put the regulator-required amount into reserves. Whatever is left may be proposed as a dividend to members at the AGM, and any dividend is paid into your share account.