The_Banker
Registered User
- Messages
- 342
These charges are applied regardless of whether its on line or over the counter.
Seems a little high to me. Are any posters aware of this happening at their credit union?
Which CU is it? I have had no such communication from my CU, Carlow.
Not at all strange. With very low interest rates and low inflation banks and credit unions make very little money from taking deposits, and can even lose money.
They have to introduce charges to cover their costs. Banks are doing it too.
You have a funny choice of username soMaybe CU customers will be happy to move to this new current account for €48 a year but traditionally CU customers like the CU because they are exactly that.... Credit Unions and not banks.
Given to me by sarcastic friends burned from listening to my betting tipsYou have a funny choice of username so
You used to "pay fees " tp the credit union via the fact that they paid a low dividend and inflation would eat away at savings.
But with market rates and inflation at zero it's just a different set of arithmetic.
I don't know enough to judge whether the mentality has changed inside the CUs, but I know the outside world has.
If theses fees roll out nationwide my guess will be many will take there savings out of them and hoard cash at home.
The €1 per transaction seems high though
I received an email last week from my Credit Union advising that from Feb 1st 2021 they are introducing charges.
If you deposit or withdraw money you will be subject to a €1 charge per transaction (there is no charge for loan repayments). The option of paying €4 a month (€48 a year) allows you to do as many transactions a month as you like.
These charges are applied regardless of whether its on line or over the counter.
Seems a little high to me. Are any posters aware of this happening at their credit union?
I think this will cause issues for the grand parents who put a fiver a week/month away for each grand kid. I know that is a popular form of saving where I live.
I’d be interested to know if this is happening anywhere else.
I could never understand why credit unions were bothering with current accounts - the level of switching between the banks seems non-existent so starting from scratch in a market that has two massive players, and where credit unions have no experience/reputation, seems like a bit of a strategic misstep. I can't imagine it was cheap to set up current account infrastructure.
I can only speculate but it may have been driven by demand from the hundreds of thousands of customers who only have a CU account.
25 years ago many people were paid in cash and lived in cash, the CU was a place for saving and borrowing.
Nowadays almost everyone is paid by bank transfer, and more and more welfare payments are done that way too. Bill payment by direct debit is all the utility companies want too. You need a current account for this.
Maybe CUs were afraid that if they didn't offer current accounts then people would leave for the banks and never come back.
Are there really hundreds of thousands of people that only have CU accounts?
Your last point is interesting though. If credit unions think they can compete with banks for all banking services they're mistaken. They should focus on what they were historically good at and become lean, local lenders. All this arsing around with current accounts and debit cards will only lead to an accelerated decline. The likes of Revolut & N26 can and will render them obsolete for such services overnight. They should shrink their balance sheets and put all their energies into increasing their market share of the personal loans market with some diversification into other lending types where appropriate.
Charlie covers it as well
Credit union to charge for transactions on savings accounts?????????????????????????????????????????????????
A LARGE credit union is introducing transaction charges for members who want to access their savings accounts.www.independent.ie
They've 185m in cash / investments. An average negative rate of just 0.1% is 185,000Surely the 200k loss is not directly from the 200+ million in assest and bank charges on it ?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?