Ballinascreen Credit Union

Ballinascreen Credit Union is a local credit union in County Londonderry, Northern Ireland, owned by its members rather than by shareholders. It does two main things: it takes members' savings, which are held as shares, and it lends to members. Savings are instant access provided they are not pledged as security on a loan, and every share held for the year is eligible for a dividend when one is declared¹.

The credit union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with firm reference number 574313². It appears on the Bank of England's list of credit unions incorporated in the UK⁴. Savings balances are covered by the Financial Services Compensation Scheme, which protects up to £120,000 in total across all accounts a member holds with the credit union¹.

Loans are priced with interest calculated daily on the reducing balance, so the interest charged falls as the balance falls, and there are no application fees and no early repayment charges⁶. Eligible members also get free loan protection insurance and life savings cover, both of which are paid for by the credit union rather than by the member⁶.

What Ballinascreen Credit Union offers members

The credit union's core products are a savings account held as shares and a personal loan. Membership is what unlocks both: you join, you save, and once you have a record of saving you can borrow. Savings are held as shares rather than as a bank deposit, which is why the return is a dividend rather than interest¹.

Alongside the main savings account, the credit union offers free life savings coverage on balances up to £15,000, and free loan protection insurance for eligible members¹. Both are member benefits rather than products you buy: the credit union arranges them, and there is no separate premium to pay⁷.

Credit unions generally offer a wider range of accounts than the headline savings and borrowing, including junior savings, Christmas savings accounts, prepaid debit cards, insurance products and cash ISAs, and in some cases mortgages⁸. What any individual credit union offers depends on its own rulebook and size, so the products listed on Ballinascreen Credit Union's own site are the ones to check. For the wider picture of how these organisations work, see credit unions: a complete guide.

Savings as shares: how dividends are earned

Money paid into a credit union savings account buys shares, and one share is equal to £1¹. Every share held with Ballinascreen Credit Union for the year is eligible for a dividend when one is declared¹. A dividend is the return on those shares, paid by the credit union out of its surplus, and the amount depends on how much has been saved and how much surplus income is available to distribute⁹.

That structure is common across the movement. The profit a credit union makes is shared among savings accounts as a dividend, with some kept back to improve services, and it is usually paid annually¹⁰. It is not interest, and it is not guaranteed: the return on shares is derived from any surplus profit left at the financial year end, so a year with no surplus means no dividend¹². Some credit unions describe the possibility of earning a dividend when the credit union does well, rather than a fixed return¹³.

In practice this means a saver's return depends on two things: how much they have saved, and how the credit union's year went. Dividends are normally paid once a year rather than monthly, and the amount depends on how much has been saved and how much profit the credit union has made¹¹. Share-based accounts pay an annual dividend rather than interest¹⁴. Any surplus is given back to members as a dividend, and it is not guaranteed¹⁵.

Getting your savings out: access and withdrawal rules

Savings at Ballinascreen Credit Union are instant access provided they are not collateral against a loan¹. The condition matters more than the headline: money pledged as security against a loan cannot be withdrawn while that loan is outstanding, and requests for share withdrawals are referred to the Credit Committee⁶.

That is the standard credit union position. Members can withdraw savings at any time providing they have not been used as security on an existing outstanding loan¹⁶. Savings balances over and above any loan are available to withdraw on demand, provided the money is not pledged as security and subject to the credit union's rules¹⁷. Where a withdrawal would bring savings below the loan balance, including shares lodged after the loan was taken, it may not be allowed¹⁹.

Withdrawals are usually paid by cash or bank transfer²⁰. Some credit unions offer quick access by BACS transfer, and access can depend on which type of account the savings sit in, with many offering instant access²¹. Credit unions may also set their own limits on how much can be saved²².

Ballinascreen Credit Union loans and how interest is worked out

Interest on a Ballinascreen Credit Union loan is calculated daily on the reducing loan balance⁶. That single sentence does most of the work in explaining what a loan costs: because the balance falls with every repayment, the interest charged each day is worked out on a smaller figure as the loan runs down. Repayments calculated on a reducing balance mean less interest is paid with each repayment²³.

The credit union states there are no application fees and no early repayment charges⁶. Loans can be topped up before the original balance has been fully cleared, and repayments can be made weekly, fortnightly, monthly or quarterly⁶. Some members may not be eligible for a 25-year loan term depending on their age and health status, under the requirements of the loan protection insurance⁶.

Existing loan terms and rates are not changed when the credit union updates its lending: new limits and rates apply to new loans and to top-ups of existing loans only⁶. So a loan already running keeps the rate and term agreed at the time, and only fresh borrowing is written on current terms.

For how credit union borrowing compares with other options, see loans: a complete guide.

Repaying a loan early, topping it up and choosing a repayment schedule

There is no charge for paying more than agreed, paying off lump sums, or clearing the entire loan balance early⁶. That is common among credit unions: borrowers can pay off a loan early, make additional lump sum repayments or increase regular repayments without a penalty²³.

Repayment frequency is a choice rather than a fixed term of the loan. Weekly, fortnightly, monthly and quarterly repayments are all available⁶. A shorter schedule means larger payments but less interest overall, because the balance falls faster and interest is charged daily on what is left. A longer schedule spreads the cost but keeps the balance higher for longer.

Topping up is the third option. A member can borrow more before the original loan is cleared, rather than waiting to finish one loan and start another⁶. The practical effect is that the new borrowing is written on the terms in force at that point, while the original loan keeps its existing terms.

Free loan protection and life savings insurance

Ballinascreen Credit Union provides two member benefits at no direct cost. In the event of death or permanent disability, eligible members have their loan balances cleared by the insurance, and eligibility criteria apply⁶. Life Savings Insurance is the cover provided to members as a member benefit, at no direct cost, as an incentive to save regularly⁷. Free life savings coverage applies to balances up to £15,000¹.

The credit union does not underwrite this cover itself. It arranges it, and the insurance is provided by an insurer: the outstanding loan balances of eligible members are automatically insured at no direct cost to the member⁷. Across the movement, most credit unions offer free life or loan protection insurance, and the terms sit in a policy rather than in the member's own contract¹⁰.

The shape of the cover varies between credit unions. Some offer life savings insurance on the savings of eligible members, and loan protection, life savings and death benefit insurance at no direct cost to eligible members²⁴. Others offer free protection on life savings and loans, subject to policy terms and conditions²⁶. Some restrict free life insurance by age, for example to members aged 16 to 79²⁷.

Because eligibility depends on age, health and the policy terms, the credit union's own insurance page is the place to check what applies to a particular member.

Fees and charges

Ballinascreen Credit Union charges no transaction fees or charges on savings accounts¹. On the lending side there are no application fees and no early repayment charges⁶. The credit union does not publish a schedule of product fees on the pages summarised here, so any charge that applies to a specific account or loan is set out in its own terms and conditions⁷.

Across the movement, fee structures vary. Some credit unions charge a membership fee for new members, and an annual administration fee agreed by members at the annual general meeting to help cover running costs²⁸. Others advertise no hidden fees or charges on their loans¹⁹. Because these are set locally, a member comparing credit unions is comparing different fee policies, not one standard.

The one figure that is fixed at Ballinascreen Credit Union is the share value: one share equals £1¹. That is the unit of saving rather than a charge, but it is the number that determines how many shares a member holds and therefore how a dividend is worked out.

Paying in and managing your account

Money can be paid in by Direct Debit, standing order or debit card payment¹. Direct Debit collections can be set to take money from a bank account on a weekly, fortnightly or monthly basis¹. Credit unions more widely accept payments by direct debit, standing order, cash, cheque or debit card in branch, by telephone using a debit card, and online through a website or member area¹⁵.

To use a cash machine, a member needs an ATM sub-account opened so that withdrawals can be made from the machine¹. The card is linked to that sub-account rather than to the main share balance. Some credit unions issue their own card giving round-the-clock access to available savings at their ATM²⁹.

Withdrawals are paid by cash or bank transfer²⁰. Members can also open more than one account where the credit union allows it, which is useful for separating money for different goals such as budgeting or Christmas²⁶.

Dormant accounts and how to reactivate one

If an account at Ballinascreen Credit Union is inactive for three years and the credit union is unable to contact the member within that period, it may become a dormant account¹. The rule sits in the credit union's rulebook, where it is numbered Rule 19 after an earlier Rule 22¹.

Three years is the common test. Accounts become dormant after three years of inactivity where the credit union cannot reach the member³⁰. Some credit unions express the same period as 36 months of no transactions and no response to correspondence, after which the account is placed in a suspense account³². Christmas saver accounts can be treated differently: where no deposits are made for six months or more, the credit union may declare the account dormant, and no dividend is paid on dormant accounts³³.

To reactivate a dormant account, a member conducts a transaction and supports it with photographic identification such as a passport or driving licence, or a birth certificate for a child, plus confirmation of address dated within the last three months, such as a utility bill or revenue documentation¹. The same evidence is asked for by other credit unions applying the three-year rule³¹.

FSCS protection for your savings

All savings balances at Ballinascreen Credit Union are covered by the Financial Services Compensation Scheme, and a member's savings up to £120,000 are 100% protected¹. The scheme protects up to £120,000 in total across all accounts a person holds with the credit union⁵. It exists to protect savers if a bank, building society or credit union runs into financial difficulty³⁴.

The limit is per person, not per account, so several accounts with the same credit union count together towards the same £120,000⁵. Shares in a credit union are eligible for protection under the scheme, which is why savings held as shares are covered in the same way as a deposit³⁵. Credit union savings are protected by the FSCS¹⁰.

Not everything is covered. Credit insurance is not eligible for FSCS protection, so the loan protection and life savings benefits described above sit outside the scheme and depend on the insurer instead³⁶.

Contacting Ballinascreen Credit Union and complaining

Ballinascreen Credit Union publishes its contact details and opening arrangements on its own site, and members deal with the credit union directly for withdrawals, loan applications, top-ups and dormant account reactivation¹. The credit union's terms and conditions set out the contractual position on accounts and services⁷.

If something goes wrong, the route is the credit union's own complaints procedure first. Credit unions are regulated by the Financial Conduct Authority, and the Financial Ombudsman Service can look at complaints about firms regulated by the FCA once the firm's own process has been used³⁷. The FCA Register entry for Ballinascreen Credit Union Limited, reference 574313, confirms the firm's status and permissions, including accepting deposits².

Free, impartial help is available separately from the firm. The Consumer Council for Northern Ireland provides help and support for consumers with financial services problems, and its guidance covers savings accounts as well as where to get help when something goes wrong³⁸. For debt problems, National Debtline and StepChange both offer free advice, including on completing a debt management plan and on finding out who a debt is owed to³⁹. Advice NI and similar services can help with benefit problems, including Universal Credit sanctions, which often sit alongside debt issues⁴¹.