Frequently Asked Questions
Are my savings secure with Westport Credit Union?
Your savings in Westport Credit Union are very secure and backed by strong assets and reserves. In addition your savings continue to be guaranteed by the Deposit Guarantee Scheme which guarantees all savings in financial institutions up to amounts of €100,000 per member.
Why are you introducing a savings limit?
Over the last number of years, Westport Credit Union like many other Credit Unions throughout Ireland has seen significant increase in savings held by our members. While this savings increase underlines the confidence our members have in their Credit Union, it also adds significantly to our overall cost base which is reflected in terms of increased Regulatory levies, increased reserve requirements and increased insurance costs.
In addition member’s savings that are not lent out have to be placed on deposits with other financial institutions, unfortunately in the current low interest rate environment these institutions are paying little return and indeed in many cases are charging the Credit Union to hold short term deposits.
The Board of Westport Credit union is continually endeavouring to improve member services and believes that the introduction of a savings limit is an essential change required to protect the Credit Union and ensure its continued success.
What is the savings limit?
The limit applies to the total amount a member can have in savings with Westport Credit Union.The limit is based on the member not the account. So each member is limited to €30,000 savings, whether those savings are in a sole account, joint account or a combination of both.
If a member has less than €30,000 in savings, no action is needed, however any lodgements or transfer of funds to your account which would bring your savings balance in excess of the savings limit will not be processed.
What about members with savings currently above €30,000?
With immediate effect members will be unable to make further lodgements until their balance falls below €30,000.Those members with a balance in excess of €30,000 are being asked to withdraw the excess balance to bring them under the €30,000 limit by 1st July 2021.
What if my savings are pledged against a loan?
If members have savings pledged against a loan, the savings limit will still apply. They will not be able to increase their savings above the €30,000 limit.
How many members will this affect?
The savings limit will directly affect members with savings in excess of €30,000, currently less than 3% of members. Members in this category cannot make lodgements to their account(s) until such time as the balance in their savings is below €30,000. There is no restriction on members withdrawing funds from their account.
How long will the limit remain?
Given the current and projected future challenging climate of increased regulatory levies and historically low returns on investments, the savings limit will be in place for the foreseeable future. However, the Board of Westport Credit Union will keep the savings limit under constant review and if a decision is taken to change the current arrangement members will be notified directly of this.
Will this affect member’s dividend amend interest rebate?
The dividend and interest rebate are decided upon on a year by year basis at the Annual General Meeting. The amount of surplus will determine what amount is available for dividend/rebate. By introducing a savings limit, we are attempting to maximise the surplus available.
Does this mean the credit union cannot give out loans?
Westport Credit Union is in a strong position to give out loans. Our ability to lend is in no way affected by the savings limit and we continue to provide valuable loan services to the local community.
Does this mean the credit union is in difficulty?
No, this has no bearing on the day to day operations of the Credit Union.
Westport Credit Union is adequately capitalised with total reserves of €20 million (19%) and assets of just over €105 million.
Each time our savings increase, we must allocate more money from our surplus funds to our regulatory reserve, thereby reducing the funds we have available to pay out by way of dividend or loan interest rebate. It also reduces the amount we can afford to invest in new services and new technology options that can benefit all our members.
To reduce the impact of this savings growth, the decision was taken to limit savings for the long-term benefit of our members.
When is the Annual General Meeting (AGM)?
The AGM is usually the first week of December every year. Check the website closer to the time for confirmation of the exact date.
When is the Annual Report available?
The Annual Report is usually available to members one week before the AGM. Check the website for news and updates.
