Why save with a credit union? Saving is setting any surplus income over expenditure. People save for many reasons, but a major underlying factor is that it is desirable to have funds available should they be needed for unanticipated expenditure. Credit unions serve a very real purpose here in a society that has increasingly come to rely on borrowing whenever a crisis arises. Most people would admit that it is unwise to borrow large balances on credit cards, sometimes at rates in excess of 20% per annum, but thousands of people do exactly that. Let's not forget one of the purposes of credit unions is training and education of members in the wise use of money and in the management of their financial affairs. This starts with getting into regular savings habits, promoting self-reliance rather than borrowing and increasing the efficiency of running the household. The benefits of saving with your local credit union: Convenience - members can save regularly and or irregularly and access their funds immediately or at very short notice. Mutual benefit - the activities of a credit union are transparent, and the members know that the funds will be used only for their benefit. Capital guaranteed - by law, credit unions must maintain the capital value of their members' savings balance. Return - the dividends payable to credit union savers regularly outperform the deposit rates paid by many major banks and building societies (dividends are not guaranteed). Expenses - credit unions have lower operating cost, ensuring that as little as possible is tied up in the bureaucracy and administration and facilitating lower loan rates, higher dividend rates or both. Inclusion for the excluded - credit unions enable those traditionally turned away or not targeted by the larger financial institutions to avail of savings facilities and have access to relatively low-cost loans. Gross payment on dividends - this is especially convenient for the non-taxpayer. Some credit unions offer life savings insurance as an additional benefit provided to saving members.