GREAT NEW LOAN RATE AND DIVIDEND ON SAVINGS

RMTnews :: may 2006 :: www.rmt.org.uk 22 THREE PER CENT DIVIDEND The AGM decided to pay a dividend for savers of three per cent of their shareholdings as at 30 September 2005, which is the end of our financial reporting year. This is a very good rate of dividend on savings and demonstrates the credit union’s ability to offer competitive rates to both savers and borrowers. A GREAT SERVICE The aim is, of course, to provide a great service for RMT members. The RMT Credit Union should be the first choice for savings and loans for RMT members and with the support of the union it is making great strides towards that aim. WHAT IS YOUR CREDIT UNION? The Credit Union (CU) is basically a large savings and loans club that provides a not- for-profit source of credit, while enabling members to build a meaningful savings balance which attracts a dividend. We save together in a pooled fund and then use that money to lend to each other at low rates of interest. The difference between a CU and commercial organisations is that it removes the profit motive from savings and loans services. It is not looking to exploit or make profits but to provide low cost loans and good savings rates. It is a mutual organisation that enables all surpluses to be redistributed according to members’ wishes. This is in direct contrast to the high street banks which use workers’ money to extract profit. Last year HSBC posted profits of £10.5billion, so when you pay high interest to the banks you know why. Because a CU does not seek to make profit it can balance the needs of savings and lending members. It keeps interest on loans as low as possible while creating a surplus that pays the dividend. And it is democratic. The RMT Credit Union is run by a Board of Directors elected by, and accountable to AGM, similar to the trade union. But it is also a professional service fully regulated by the Financial Services Authority (FSA) and complies with all the regulatory and statutory duties that govern the banks and high street organisations. USING THE CREDIT UNION To use CU services you have to be an RMT member and then join the RMT Credit Union for which there is no fee. You become a member by completing the application form providing proof of identity and address (see page 30), and you are required to save at least £5 per month by Direct Debit. Some people just use our savings service but the concept of the Credit Union is that you can borrow at the same time as RMT Credit Union GREAT NEW LOAN RATE A The RMT Credit Union’s Annual General Meeting recently reported that membership, savings and loans are all on the increase and decided to pay dividends to shareholders and set a new discount interest rate Many members, including Mufaro Mapinda (left) and Dave Barrington (right), have already benefited from RMT’s Credit Union