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Local Credit Union Savings return on investment

  • 01-09-2019 3:23pm
    #1
    Ultra Tempest
    Registered Users Posts: 4 ✭


    I’m considering joining the credit union & setting up a savings account.

    Is there a way to find out what the return on investment was for 2018 or 2017?

    Is the return paid daily/weekly/monthly/annually?

    Do they offer instant access to savings?

    Is this fixed or can I can deposit/withdraw whenever I please?

    Thanks


Comments

  • #2
    Sonny noggs
    Closed Accounts Posts: 1,523 ✭✭✭Sonny noggs


    Ask them?

    They favour borrowers though, so for example they may give a loan interest rebate to borrowers ahead of better returns for savers.


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    Ultra Tempest wrote: »
    Is there a way to find out what the return on investment was for 2018 or 2017?

    Check their website for previous annual reports.

    But the interest (if any) they pay on deposits will almost certainly be as close to zero as makes no difference. CUs are drowning in surplus cash and what they can't lend, they have to place on deposit with banks at abysmally low rates. That's why so many of them are advertising loans on local radio. Some of them are now imposing caps on the amount you can have on deposit because the money is doing nothing except piling up and they can't make any use of it.

    The interest they're getting from borrowers is typically enough to cover their expenses (staff wages, rent, IT etc.) but there is usually no surplus to pay interest to depositors.


  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,735 Mod ✭✭✭✭Henry Ford III


    If you want to actually make some money OP you need to invest and take a level of risk in keeping with your risk/reward profile. To make it worthwhile you need to earn at least the rate of inflation after costs and tax. That's a real challenge.

    CU's are earning zero or sometimes negative returns on deposits so they can't pay you much/anything for your money.


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