Celtic Credit Union

Celtic Credit Union is a not-for-profit credit union for people who live or work in the Swansea and Neath Port Talbot areas of south Wales. It offers two things: savings accounts and loans. There are no transaction fees for saving with it or borrowing from it, and money held in its savings accounts is protected by the Financial Services Compensation Scheme in the same way as money in a bank or building society¹.

It is a small, member-owned organisation rather than a bank. A credit union is a cooperative financial institution, and a not-for-profit financial provider run for its members rather than for outside shareholders³. Celtic Credit Union is authorised by the Financial Conduct Authority with permission to accept deposits, and it appears on the Bank of England's list of UK-incorporated credit unions⁵.

The credit union also trades as Swansea Bay Credit Union and Neath Port Talbot Credit Union, and was previously known as Neath Port Talbot Credit Union⁵. If you are searching for any of those names, you have found the same organisation.

What Celtic Credit Union offers members

The credit union's offer is deliberately narrow. All credit unions offer savings accounts and loans, and Celtic Credit Union is no exception¹⁰. Its own pages cover a savings account, a Christmas savings scheme, and three loan products: a standard loan, an express loan and a payroll loan².

Larger credit unions elsewhere add current accounts, cash ISAs, junior savings, prepaid debit cards and insurance, but those are not part of what Celtic Credit Union publishes¹⁰. If you want a credit union current account, that is a different provider's product, and MoneyHelper's guide to credit union current accounts explains how they work.

The credit union describes its purpose in terms of the local area: it uses the money saved by its members to fund affordable loans, so savings help others in the community². That is the model across the sector. Members pool their savings so that they can borrow from each other at a low rate of interest, and any surplus is shared among the members rather than paid to shareholders¹⁴.

Two features distinguish credit union membership from an ordinary savings account. First, members may receive a share of any surplus, paid as a dividend. Second, members who borrow may receive a loan interest rebate. Both depend on how the credit union has performed and neither is guaranteed¹.

Savings accounts: dividends paid once a year

Celtic Credit Union's savings account is a member account rather than a retail savings product. You pay money in, it earns a return if the credit union makes a surplus, and it funds lending to other members².

The return takes the form of a dividend. Credit unions normally pay a dividend once a year, and the amount depends on how much you have saved and how much profit the credit union has made¹⁵. The credit union's own wording is that its model allows savers and borrowers to be paid an annual dividend from loan income². A dividend is not interest and is not guaranteed: one credit union describes its own as an annual dividend that may be paid, and another as a variable dividend agreed retrospectively at the annual general meeting¹⁷.

Celtic Credit Union also runs a Christmas savings scheme, which it describes as a savings scheme to make Christmas less of a headache¹¹. It works on the same principle: the money saved by members funds affordable loans for members, and savers and borrowers may be paid an annual dividend¹¹.

For the wider picture on how member accounts, notice periods and withdrawals work across the sector, see savings accounts: a complete guide.

Borrowing from Celtic Credit Union

Celtic Credit Union publishes three loan products. The standard loan runs up to £5,000 with a maximum term of 5 years⁹. The express loan and the payroll loan are the other two, and the payroll loan is designed around repayment straight from wages⁸.

All of them work the same way in principle. You must be a member, loans are subject to approval, and terms and conditions apply¹². When you take out a loan, the credit union sets up a savings pledge alongside your loan repayments, so you build savings while you repay⁹. Repayments can be made weekly, fortnightly, every four weeks or monthly¹².

Credit unions generally lend on a multiple of what you have saved. Independent guidance puts this at least two or three times the amount you have in savings, depending on the individual credit union's loan policy¹⁵. That is a sector-wide rule of thumb rather than a Celtic Credit Union figure, and the credit union's own loan policy decides what applies to you.

The application process is online, in four steps:

1. Register for online access⁹.
2. Complete an online loan application⁹.
3. Connect your Open Banking so the credit union can see your account activity⁹.
4. Provide any additional supporting documentation it asks for, and prove your identity⁹.

Subject to approval, the funds are paid to you directly¹².

How a credit union loan compares with high-cost lenders

Credit union lending sits between high street personal loans and high-cost credit, and it is worth being precise about where.

On cost, credit unions can be a more affordable alternative to banks or expensive payday loans, and they sometimes offer cheaper loan rates²⁰. Interest rates on credit union loans are capped⁴. Against that, credit unions will only lend what you can afford, and affordability is checked against the money you have left after paying bills¹⁰. Some credit unions lend as soon as you become a member, while others require a period of saving first¹⁰.

The comparison with payday lenders is the one most people are making. Payday loans are a form of high-cost short-term credit, and credit unions are widely described as an alternative borrowing option to them²². The difference is not only price. The Financial Ombudsman Service has set out how it handles complaints about unaffordable lending, and the standards a lender must meet when assessing affordability vary with the type of lender and the type of loan²³.

The sector's scale is worth knowing when you weigh it up. UK credit unions made £2,338.4 million of loans to members in 2023, an increase of 21.4% and the largest year-on-year change on record²⁴. Across the sector in the third quarter of 2024, total expenditure grew faster than total income, at 11.96% against 8.12%⁶. That is a sector-wide pressure, not a statement about Celtic Credit Union's own finances.

No transaction fees on saving or borrowing

Celtic Credit Union states plainly that you do not pay a transaction fee for saving with it, or for borrowing money⁸. That is a common feature of credit unions rather than a distinctive one: other credit unions describe no transaction fees or charges, no hidden charges on transactions, and no account fees or maintenance costs²⁵.

What this means in practice is that the cost of borrowing is carried in the interest you pay on the loan, and the return on saving is carried in the dividend. There is no separate charge for paying money in, taking it out, or repaying a loan.

It does not mean borrowing is free, and it does not mean there are no charges at all in every circumstance. Loans are subject to approval and to terms and conditions, and those terms are where any charges beyond interest would be set out¹². The credit union's own pages carry its current terms.

Who can join: the common bond in Swansea and Neath Port Talbot

Every credit union in the UK may only accept members who share a common bond, and that bond determines who can join²⁸. It can be based on living or working in the same area, working for the same employer, or belonging to the same association such as a trade union or a church¹⁰. MoneyHelper puts it as members sharing a common bond such as living, working, studying or volunteering in a certain area⁴.

Celtic Credit Union's common bond is geographic. To be eligible for membership you must be living or working within its common bond area, and the Welsh Government directs people in the Swansea and Neath Port Talbot areas to Celtic Credit Union¹. Working in the area counts, so living outside it does not automatically rule you out, though the credit union will confirm your circumstances when you apply.

One further route in is worth knowing. Anyone in the household of a person who has a common bond with a credit union can usually join¹⁴. So if someone you live with qualifies, that may open the door for you.

If you are outside the area, the Welsh Government points everyone else in Wales to Credit Union of Wales⁷. Across England, Scotland and Wales there are around 400 credit unions, and a finder service can locate the one that covers you²⁹.

How to join and what identification you need

Joining starts with confirming that you fall within the common bond, then providing identification. Celtic Credit Union asks for two forms of identification to join, one of which should preferably carry a photograph¹. That matches practice elsewhere in the sector: one credit union asks for two forms of identification, and another asks for one photographic document such as a passport or driving licence plus one proof of address dated within the last three months²⁷.

The general rule across credit unions is that you visit or call your chosen credit union to confirm what information it needs, because requirements differ between them³. For Celtic Credit Union, the published requirement is the two forms of identification¹.

To open a savings account, a minimum of £3.00 is needed, and that balance also keeps the account activated¹. Other credit unions set their own minimums, which vary: one asks for a £5 minimum plus £1 membership, another for £5.00 at the office, and others for £30 or £40 at account opening²⁷. The £3.00 figure is Celtic Credit Union's own.

Once your account is open, you can pay money in through BACS, by standing order, from your payroll, or in cash². The credit union also says you can pay into savings or pay off a loan by standing order or direct debit without calling into the office¹. Across the sector, members can also pay in by payroll deduction, through benefit direct accounts, through retail payment networks such as PayPoint and PayZone, or in cash at local offices and collection points³.

Banking with Celtic Credit Union online and in the app

Celtic Credit Union offers full online banking and a mobile app, available through its website and on both the Apple and Android app stores¹. That matters for a small credit union, because it means you are not dependent on office opening hours for routine transactions.

The online service is also the route for borrowing. Loan applications are made by registering for online access, completing an online loan application, connecting your Open Banking, and providing any additional supporting documentation⁹. The same steps apply to the standard loan and the payroll loan⁹.

If you prefer to deal with a person, the credit union's payment instructions assume some members still call into the office, since it contrasts paying by standing order or direct debit with doing so in person¹. Cash payments are accepted².

How your savings are protected

Savings with Celtic Credit Union are protected by the Financial Services Compensation Scheme, the credit union states, in the same way as savings with banks and building societies². Credit unions generally have their members' savings protected by the FSCS, and one credit union notes that credit unions are also fully insured against fraud¹⁰.

The FSCS limit is a single figure per person, per authorised firm, and it applies across all the accounts you hold with that firm. Celtic Credit Union is the authorised firm here, and its trading names Swansea Bay Credit Union and Neath Port Talbot Credit Union sit under the same authorisation, so money held under any of those names counts towards one limit rather than several⁵.

Celtic Credit Union is authorised by the Financial Conduct Authority with permission to accept deposits, and it appears on the Bank of England's list of UK-incorporated credit unions⁵. You can check its entry on the FCA Register using firm reference number 232150⁵.

Contacting Celtic Credit Union and complaining

Celtic Credit Union's website is at www.celticcreditunion.co.uk, which is the address recorded on the FCA Register⁵. Its published pages cover savings, loans and membership, and the online banking service is the main channel for account transactions¹.

If something goes wrong, the first step is a complaint to the credit union itself. If you are not satisfied with its final response, you can take the complaint to the Financial Ombudsman Service, which is free and independent³². The ombudsman can look at complaints about credit borrowing, including whether a loan was affordable when it was made²³.

Before that stage, free and impartial help is available. MoneyHelper carries information about credit unions and how they work⁴. The Consumer Council offers guidance on savings accounts and on budgeting³³. The Welsh Government publishes advice on managing credit²¹, and the Scottish Government points people to the Citizens Advice Scotland budgeting tool³⁵. Personal budgeting support is available for people who need extra help with money advice or alternative payment arrangements when moving to Universal Credit³⁶.

For the wider picture on what credit unions are, how they differ from banks, and how to find the one that covers your area, see credit unions: a complete guide.