Capital Credit Union

Capital Credit Union is a credit union based in Edinburgh that has been serving members and their families for over 30 years, and it has more than 36,000 members and £42 million in assets¹. Like all credit unions, it offers savings accounts and loans, and Capital Credit Union also offers mortgages and a Junior ISA². When you join, you become an owner of the credit union rather than just a customer, and every member has one vote at the annual general meeting regardless of the size of their savings¹. Its common bond is employment-based, which means anyone working in the UK can join¹.

When you join, you become a member and part owner of the credit union rather than just a customer. Every member has one vote at the annual general meeting regardless of the size of their savings, and the credit union answers to its members rather than to outside shareholders¹. Savings with a credit union are protected by the Financial Services Compensation Scheme in the same way as bank and building society savings³, and complaints can be escalated to the free Financial Ombudsman Service⁴.

What Capital Credit Union offers: savings, loans and mortgages

Credit unions are financial co-operatives. Members pool their savings, and those savings are used to fund loans to other credit-worthy members of the same credit union⁹. All credit unions offer savings accounts and loans², and Capital Credit Union's own range covers three broad areas: savings, lending and saving for children.

On the savings side, the credit union offers a range of savings accounts, including instant access accounts, joint savings, a Christmas Saver, Junior Savers accounts, Term Deposits and a Junior ISA¹⁰. Savings can be paid in through the Capital app, over the phone, by regular direct debit, or directly from salary where your employer is one of its partners¹⁰. If you want to understand how credit union accounts compare with bank and building society accounts generally, see our guide to savings accounts.

On the lending side, Capital Credit Union advertises eight loan types with one application process, covering purposes such as home improvement and green loans, and it also offers mortgages¹². All loans are available to members, and you can join as part of the loan application process¹². For background on how credit union borrowing compares with other forms of credit, see our guides to loans, credit cards and mortgages.

Credit unions are not-for-profit in the way banks are not: any surplus is returned to members rather than to outside investors. The profit made by a credit union is shared among savings accounts as a dividend, with some reinvested to improve services³. Larger credit unions elsewhere also offer extras such as Christmas savings accounts, ISAs, budgeting accounts and current accounts³, though Capital Credit Union's own range centres on savings, loans, mortgages and the Junior ISA.

Saving with Capital Credit Union: dividends, interest and fixed terms

Capital Credit Union's savings accounts work in one of two ways, and the difference matters for how your return is decided. Variable-rate accounts pay interest annually. Share-based accounts, which include the Instant Access Share, Joint Savings, Christmas Saver and Junior Savers accounts, pay an annual dividend rather than interest. Term Deposits pay interest at the end of the fixed term¹⁰. An account may include a dividend or interest, but not both⁷.

A dividend is not the same as interest, and the distinction is worth understanding before you save. Profit shares are distributed among credit union members annually and are known as a dividend¹³. The amount depends on how much you have saved and how much profit the credit union has made¹⁴, so it is not fixed in advance and it is not guaranteed: Capital Credit Union's terms state the dividend is subject to surplus and approval by members at the annual general meeting⁷. The dividend is declared at the AGM, to which all members aged 18 and over are invited¹⁵.

There are two further rules in the terms worth knowing. Dividend or interest is only paid to those still in membership at the time it is declared or when it is due⁷. And you are only eligible for a dividend or interest if its value is over £1¹⁵. Dividends are paid without income tax deducted, so members need to declare dividend payments to HMRC as part of any tax return⁷.

Paying in is flexible. You can put money into your savings whenever you like through the Capital app, top up over the phone, set up a regular direct debit, or save directly from your salary if your employer is one of the credit union's partners¹⁰. Access to your money depends on the type of account your savings go into, and many of the accounts offer instant access⁸.

For children, the Junior ISA can be opened from the day the child is born. You must be a member to open one, and joining is free. The process has four steps: become a member, open the Junior ISA online with the child's name, date of birth and your relationship to them, wait for the team to process the application and confirm by text, then start saving¹¹. If you are weighing a Junior ISA against other ways to save for a child, our guide to ISAs explains how they work.

Payroll saving through your employer

Payroll saving is Capital Credit Union's best-known service. Money is taken directly from your salary and paid into your own Capital Credit Union savings account, so you need to be a member⁸. The credit union works with more than 90 employer partners across Scotland, large and small⁸, and the scheme is available through those select employer partners, subject to status and membership eligibility criteria⁸.

The mechanics are simple: you decide how much to save from each pay packet, your employer deducts it, and it lands in your savings account. You can increase, reduce, pause or stop your payroll saving at any time. There is no minimum term and no penalty for changing your mind⁸. The credit union describes its fee structure as transparent, with no hidden charges to chip away at what you save⁸.

Your savings and your membership are not tied to your job. If you leave the employer, the payroll deduction simply stops and the money already saved stays yours⁸. You can then keep saving by direct debit, or ask your new employer to explore a partnership with Capital; the credit union says partnering is free for an employer to set up and simple to run⁸. For employers, it is a staff benefit; for you, it is a way of saving that does not depend on remembering to transfer money each month.

If your employer is not one of the partners, you can still join Capital Credit Union and save by direct debit instead⁸. Payroll deduction is one of several ways credit unions elsewhere let members save too: some accept deposits at local branch offices, local shops, by direct debit, or through deductions from wages¹⁶.

Borrowing: personal loans, partner finance and mortgages

Capital Credit Union offers eight loan types through one application process, covering purposes that include home improvement and green loans¹². All loans are subject to credit assessment and affordability checks, and rates vary by product and individual circumstances¹². It also offers mortgages of up to 95% of the value of the property, rising to 100% for right to buy properties⁵, and mortgage decisions are made by the credit union rather than by an automated system⁵. You can apply for a loan and join Capital at the same time, with everything done in one place online¹².

All loans are subject to credit assessment and affordability checks, and rates vary by product and individual circumstances¹². The credit union does not publish a rate on this page; its own website sets out today's figures for each loan type. Its loan advertising states that repayments are fixed, that there are no setup fees, and that there are no early repayment charges¹². Loan applicants who are members must be 18 or over¹⁷.

If you are not already a member when your loan is approved, becoming a member is a condition of the loan. The terms state that non-members will be required to become a member of Capital Credit Union and to meet and maintain minimum membership requirements in terms of savings¹⁷. There is also a rule that links saving and borrowing: for as long as any part of a loan or the interest on it is outstanding, the credit union retains your shares up to the value of the outstanding loan, and you may not withdraw those shares until the loan and interest are repaid in full¹⁷.

Credit union loans are funded by members' savings⁹, and independent guidance describes credit union loan products as suited to individual needs and at rates you can easily afford¹⁸. That is a general description of the sector, not a quote of any particular rate. If you are considering a credit union loan to bring several debts together, official guidance in Northern Ireland suggests shopping around for the best terms from a reputable lender, and notes that building societies and banks may also offer a personal loan¹⁹. Our guide to debt explains the options and where to get free advice.

Who can join: the common bond

Every credit union has a common bond: something its members share. Anyone can become a member of a credit union, but you must share that common bond with the other members². Capital Credit Union's terms describe its common bond in three parts: membership is open to anyone living or working in its common bond area, anyone employed by one of its employer partners, or any member of Community Trade Union, and it applies to people aged 16 and over⁷. The savings account terms describe the area as the East of Scotland¹⁵.

There is a wider route in. The credit union's own guidance states that its common bond is employment-based, which means anyone working in the UK can join¹. In practice that means someone working outside the East of Scotland may still be eligible through their employer or trade union membership, and the credit union's join page sets out the current criteria.

Family members can often join too. As long as one member of a family meets the common bond requirements and has joined the credit union, other family members living at the same address can usually join³, and anyone in the household of a person with a common bond can usually join²⁰. The sector's eligibility rules have been widening: a 2026 announcement on credit union changes noted that eligibility will also widen to include students, local workers and relatives of existing members, reflecting the way people live and work now²¹.

How to join and apply

Joining is free and takes a few minutes, and you can do it online or in person²². If you are not already a member, you can apply for membership and your first savings account at the same time in one online process, followed by identity and eligibility checks and a first deposit¹⁰. When you join, you become an owner of the credit union, with a say in how it is run²².

The steps are straightforward:

1. Check you meet the common bond: living or working in the East of Scotland, employment with a partner employer, or Community Trade Union membership⁷.
2. Apply online or in person. Most people are verified straight away, with nothing to send²².
3. If the automatic identity check cannot confirm your details, follow the text message link and upload two documents²³.
4. Make your first deposit and start saving, or apply for a loan at the same time if you need to borrow¹⁰.

For a loan, you apply online in minutes, and you can apply for the loan and join Capital at the same time¹². For a Junior ISA, the four-step process described above applies¹¹. For mortgages, the application route is through the credit union's own site, and our guide to buying a home explains the wider process.

Proving your identity when you apply

Identity checks are usually automatic. For most people this happens the moment they apply, with nothing to send²³. If the automatic check cannot confirm your identity, the credit union sends a text message with a secure link to upload two documents. The link takes you to ID-Pal, the secure service the credit union uses to collect documents²³.

Capital Credit Union sets out exactly which documents it can accept. Documents must be current, and anything with a date must be within the time shown. The same document cannot cover both photo identity and proof of address, so you need one of each²³. Acceptable photo identity documents include a current UK, EU or EEA passport; a current passport from another country with a valid UK visa; a current full UK, EU or EEA photo driving licence; the old paper UK driving licence; a current UK provisional photo driving licence for members up to 25; a police warrant card; a UK Armed Forces identity card; a National Entitlement travel pass; current student ID from a recognised body; a Blue Badge; HMRC tax notification or correspondence dated within the last 12 months; a benefit or pensions letter confirming your right to a current benefit; or a current PASS card such as Young Scot, Validate UK or CitizenCard for members up to 25²³.

When you send a photo of your photo identity, you also need a selfie of yourself holding it, so the credit union can be sure the document belongs to you²³. Applicants under 18 have a different list: a birth certificate, current passport, National Insurance letter, NHS medical card, or a stamped form from a partnership school for partnership pupils²³.

Asking for documents is not unique to Capital Credit Union. MoneyHelper notes that you will usually need to provide two recent documents to prove your identity and address when opening a credit union account, for example a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill⁴.

Charges, notice periods and changes to your terms

Capital Credit Union's terms set out several rights that matter day to day. You have a right to cancel your account within 14 days of the credit union receiving your signed agreement, or from when you start to transact on the account⁷. Loan agreements may be cancelled within 14 days after the loan is advanced, by telling the credit union within that period and giving written confirmation within five working days of the initial request. There is no penalty or charge for cancelling a loan, but the loan must be repaid in full together with all unpaid interest that has accrued, with interest running from the date of issue until the date of cancellation¹⁷.

If the credit union changes its terms, it must notify you personally by letter or email at least 30 days before the change takes effect⁷. You then have a window to act: at any time up to 60 days from the date of the notice, you may switch your account or close it without notice, without paying any extra charges and without forfeiting any dividend for doing so⁷.

Withdrawals have their own rules. Under the Credit Unions Act 1979, the credit union may require up to 60 days' notice before savings held as shares are withdrawn¹⁵. In practice many accounts offer instant access⁸, but the 60-day right exists in the terms. Transfers out take time too: a BACS transfer to another account may take up to 3 working days, and there is a two-day clearing system for all direct debit payments⁷.

Two further conditions are in the terms. Your account is for personal use only, and the credit union has the right to suspend your account if it suspects fraudulent activity⁷.

Complaints and help if you are struggling with repayments

If something goes wrong, you can complain in three ways: visit the office and speak to a member of staff, write to Complaints, Capital Credit Union, 31 Dunedin Street, Edinburgh, EH7 4JG, or call 0131 225 9901⁷.

Capital Credit Union is a member of the Financial Ombudsman Scheme⁷. If you are unhappy with its final response, or the eight-week timeframe has passed without one, you can take your complaint to the free Financial Ombudsman Service⁴. The ombudsman can also consider complaints about lending itself: consumers who feel they have been given unaffordable credit, or that a lender acted irresponsibly in providing a product, may be able to complain to the Financial Ombudsman Service²⁵.

If the problem is repaying rather than service quality, free help exists. MoneyHelper, the government-backed money guidance service, covers credit union accounts and where they fit⁴, and debt charities offer free advice on budgeting, borrowing and managing repayments¹⁴. If you are struggling, telling the credit union early matters, because its terms allow it to retain your shares up to the value of any outstanding loan while the loan is unpaid¹⁷. Our guide to debt sets out the free options and your rights.

How your savings are protected

Savings held with a credit union are protected by the Financial Services Compensation Scheme, the same scheme that covers banks and building societies³. All shares, which is the term credit unions use for savings, in an affiliated credit union are eligible for FSCS protection⁹. If the credit union were to fail, the scheme would step in to compensate members, and the FSCS's own pages set out the current coverage levels and how quickly it pays.

Savings held with Capital Credit Union are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000¹¹. The credit union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority⁵, and it also appears on the Bank of England's Prudential Regulation Authority list of credit unions incorporated in the UK⁶. If you want to confirm its status yourself, you can search the FCA Register by the firm's name.

Beyond the compensation scheme, your protections as a member include the 14-day cancellation right on accounts and loans, the 30-day notice period before any change to your terms, the 60-day window to switch or close without charge after such a notice, and the right to take an unresolved complaint to the Financial Ombudsman Service free of charge⁷. For more on how these protections work across UK financial services, see our guide to consumer protection, and for the sector as a whole, our guide to credit unions.