Westminster message by Iain McKenzie MP
Published 27 Jan 2012 13:00
Safe and guarded investment
On 8 January this year, changes to the Credit Unions Act came into force.
This means credit unions will become a good alternative to banks.
Credit unions are profit sharing, financial co-operatives which offer savings and loans to their members.
They encourage members to save regularly, they provide loans at low rates of interest and they provide support on financial matters.
Credit unions can provide a focal point for a community by bringing people together.
They can help to revive local economies by keeping money in the area.
Credit unions are very important in the Inverclyde area and it's very good news that these outdated restrictions have been lifted.
The changes mean membership of credit unions will no longer be limited to people having something in common, such as living in the same area or working for the same employer.
This means that more people will be able to use them.
Credit unions will now be able to provide services to community groups and businesses.
Before these changes, membership was limited to individuals.
They'll also be allowed to pay interest instead of a dividend, making their services easier to compare with banks.
Credit unions will also be listed in savings best-buy tables.
The new rules don't mean you will be able to join any credit union, but finding one you can join will be much easier.
In this day and age of financial uncertainty, credit unions are a very safe place to invest savings.
This article appeared in Greenock Telegraph 27 Jan 12
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