Frequently Asked Questions

Q. What is the difference between A Credit Union and a Bank?

A Credit Union is a voluntary group of people who
come together for self and mutual help while a bank is profit oriented.

Q. What is a Co-Op?

A Co-operative (often referred to as a co op) is a business organization owned and
operated by a group of individuals for their mutual benefit. Co-operatives are defined as autonomous
associations of persons united voluntarily to meet their common economic, social and cultural needs and
aspirations through jointly owned and democratically controlled enterprises. A Co-operative may also be
defined as a business owned and controlled equally by the people who use its services or by the people who
work there.

Q. What are Permanent shares?

To become a member of the Credit Union, one must purchase 20 shares. These shares can only be withdrawn when
the individual no longer wishes to be a member of the Credit Union.

Q. What is the difference between ordinary shares and deposits?

Ordinary shares are usually the cash security for a loan. Deposits are withdrawable any time, whether there
is a loan or not.

Q. Why choose the Credit Union over a bank?

The Credit Union allows an individual the opportunity to become the owner of a democratically controlled
financial institution. Since the credit union does not have profit maximization motive, most of the revenue
it generates is paid back to the member’s income.

Q. Do I have access to my shares when there is no loan on my account?

Yes, you do have access to your ordinary shares.

Q. How often is interest paid to my account?

Interest is paid as follows:

  • Deposits and Withdrawable Step by Step Minor – Four times per annum at a rate
    of no less than 3%
  • Dividends on permanent shares – Once per annum
  • Christmas Saving Plan – Once per annum
    at a rate of no less than 2.75%

Q. Why are persons from certain parts of the island not allowed to join this credit union?

The credit union bylaws (a set of rules that govern the operations of the credit union) define persons who
are eligible for membership. Only persons that fall within the specified area of operations qualify for

Q. Is it more profitable to save on shares rather than fixed deposits?

It is based on your rate of savings. The interest on fixed deposits is generally higher. However, when money
is saved on shares it can be claimed as a tax deduction at the end of the financial year. This is not so for
fixed deposits.

Q. What is the difference between a beneficiary and someone who is authorized to withdraw?

A beneficiary is the person who inherits your estate after you have passed. Someone who is authorized to
withdraw is only allowed to transact business on your behalf during your lifetime.

Q. Who is a member of the credit union and what is the difference between a member and a depositor?

A member of the credit Union is someone who has met the requirements for membership and has purchased at
least 20 permanent shares from the Credit Union while a depositor does not or cannot own equity shares.
Examples of depositors are small business owners who open an account for their business and step by step
minor account holders.

Q. What are the requirements for getting a loan at the Credit Union?

There are different requirements for the different loans. For loan information one should enquire at the
Credit Union.

Q. What is the minimum amount of money I can have on my account?

For members: $100.00 permanent shares and for Depositors: $5.00

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