Savings
For small to medium savers your Credit Union is where you belong
Savings as shares in a Credit Union are a better way to save. You are not just another customer but an active member of a highly successful financial co-operative.
Yes, you have a share in the ownership of the Credit Union. Along with having a say in the operation of the Credit Union you also earn dividends.
Benefits of saving with RTÉ CU
Savings balances over and above any loan you may have are available to you to withdraw on demand.
Savings are guaranteed up to a maximum of €100,000 under the Government Deposit Protection Scheme.
If the credit union has a strong surplus, a dividend is paid to members.
Free Life Savings Insurance on savings up to € 12,700 (subject to terms and conditions)
There are no transaction charges or fees.
Your savings are being used primarily to make loans to your fellow members
Types of Share Accounts
Regular & Special Term Share Accounts
- Regular Share Accounts are subject to DIRT as of 1st January 2014.
- When coupled with the removal of tax-free limits on Special Term Accounts, this means that all Credit Union Share Dividends paid to members, including children, are subject to DIRT from that date
- Dividend rate declared at A.G.M. is posted gross to members’ accounts.
- No disclosure is required by Credit Union.
- Member can hold either a regular or special share account but not both
- Exemptions are available for members aged over 65 whose total income is less that €18,000(single) or €36,000(married). For married couples only one of the spouse needs to be over 65.
- To avail of this exemption you must sign a self declaration form DE1 (available in the Credit Union office). Permanently Incapacitated members should contact their local revenue commissioners to approve the exemption, as Credit Unions have no role in this.
Up until 31st December 2013, there were options as to how members could treat their Share Accounts for tax purposes. Some members held “Regular Share Accounts”. On these accounts no DIRT was deducted from dividends paid and members dealt with their tax liability (if any) directly with the Revenue Authorities. Another option was to hold a “Special Share Account” from which DIRT was deducted from dividends by the Credit Union and paid directly to the Revenue authorities on their behalf. A third option was to hold a 3 or 5 year (Special Term Share A/C) which gave tax exemptions on dividend up to €480 or €635 respectively. From 1st January 2014, these options no longer exist. ALL dividends paid to members are fully liable to DIRT at the prevailing rate (now 41%).
Visit www.revenue.ie for more information on DIRT and exemptions.
Additional Info
On 1st January 2016, the Central Bank introduced new regulations prohibiting credit unions from accepting lodgements from members that would bring their total savings above €100,000. This €100,000 limit applies per member therefore any joint account held by 2 persons of up to €200,000 can continue.
The upshot of the foregoing is as follows:
- Any savings balances of €100,000 per member in place at 1st January 2016 may remain but not be increased.
- Any members who have brought their savings balances above €100,000 since 1st January 2016 will have the excess above €100,000 returned to them.
- Credit union members can rest easy in the assurance that their savings are safe. Credit Unions in Ireland, which are affiliated to the Irish League of Credit Unions, are secured in several ways:
- All officials of credit unions, whether volunteers or staff, must be fidelity bonded.
- Savings up to a limit of €12,700 per member are protected by the Savings Protection Scheme in all credit unions participating in the Scheme.
- Member’s savings within certain limits are insured through Life Savings Insurance.
- All monies received in the credit union are properly recorded and lodged regularly.
- Full financial statements are prepared and can be examined by members.
- Annual independently audited returns are lodged with the relevant authority, The Irish Financial Regulatory Authority.
Not a Member?
Joining the Credit Union is the best decision you could take for your money. Membership of RTÉ Credit Union is open to all RTÉ staff employed on a permanent, continuous, or long-term contract basis. Family members of RTÉ staff can join and that's family living in the same household. Staff of CEL, DDTN, Raidio na Gaeltachta, TG4, RTÉ Sports & Social Club and RTÉ Benevolent Society are also eligible to apply for membership.
