A different kind of banking

Bank on an Australian credit union

Credit unions offer a different kind of banking experience. As mutual organisations, credit unions are owned by their members – the people who save and borrow with them. This means their profits are not paid to shareholders in the form of dividends. Profits are returned to members in the form of better service, fairer fees, a full range of innovative banking products and service to the community. Every member is a shareholder of their credit union, with an equal vote and say in how the organisation is run. Every credit union is committed to the wellbeing of its members.

Credit union values are built around the principles of co-operation, integrity, trust and financial prudence. Credit unions are strong and secure, highly capitalised and responsible lenders. They are also Authorised Deposit-taking Institutions under the Banking Act and are regulated by the Australian Prudential Regulation Authority. The new Government Deposit Guarantee applies to all deposits with credit unions, along
with banks.

As at November 2008 there were 124 different credit unions operating throughout Australia. Together they hold more than $42.5 billion in assets and provide community-based, competitive financial services to more than three-and-a-half million members. That’s one in five Australians. With one of the largest Automatic Teller Machine networks in the country, full online and telephone banking services and branches around the nation, Australian credit unions have members who are rated as the happiest in the market.

Mr Chris Whitehead, Chief Executive Officer of Australia’s largest credit union CUA, said that membership of credit unions had continued to grow over the years as people realised there were more customer-focused alternatives to the traditional
profit-focused banks.

Credit unions also offer their members additional benefits including no account keeping fees on their comprehensive range of savings and transaction accounts. Members can get their savings plan started by choosing from a selection of savings products designed to give them the maximum return on their money.

Products like high interest online savings accounts should be seriously considered. These types of accounts can earn high interest on account balances and interest is calculated daily and paid monthly on the full balance, meaning that members get a greater return on their savings. And at most credit unions there are no account keeping fees and no minimum opening balance.

If members require a regular income from their savings but don’t need immediate access to their funds, a term deposit could be the ideal savings solution. Credit unions offer term deposit accounts that are designed to get the maximum return on savings while providing security with a fixed rate of return over a selected fixed investment term. An initial investment of only $1,000 is needed with most term deposit accounts in Australia and most credit unions offer members the choice of when they would like their
interest paid.

Information supplied by:

Credit Union Australia

Phone: +617 3295 9400

Email: change@cua.com.au

Website: www.cua.com.au