Citysave Credit Union

Citysave Credit Union is a member-owned savings and loan co-operative serving people who live or work in Birmingham and Warwickshire. It is a credit union, which means the people who save with it are the same people who own it, and it exists to keep West Midlands households away from living payday to payday¹. Joining is free, and you have to be a member to save or borrow².

Its main products are straightforward: savings accounts, junior savings for children, and personal loans. Loans run from £100 to £25,000 for any purpose, and the credit union says it decides within two working days of receiving all your information, paying approved funds into your bank account by 5pm that business day². Savings are protected up to £120,000 under the Financial Services Compensation Scheme⁴.

Citysave is a credit union, a member-owned alternative to a bank that takes savings from its members and lends back to them⁴. Its savings are protected by the Financial Services Compensation Scheme up to £120,000⁶. Late or missed loan payments may result in additional costs and affect your credit rating⁷.

What Citysave Credit Union offers its members

Citysave describes itself as a financial co-operative, which is the structure behind every credit union: members pool their savings and borrow from the pool, and any surplus is shared among them rather than paid to outside shareholders⁴. All credit unions offer savings and loans, and the larger ones add services such as Christmas savings accounts, budgeting accounts, current accounts and ISAs, though the features vary from one to the next⁸.

Citysave's own range covers savings accounts, junior savings, and personal loans, with a PrizeSaver draw that gives members the chance to win monthly cash prizes¹. Its savings terms allow Holiday, Christmas and Regular savings subdivisions, all of which remain part of your overall savings account rather than sitting separately⁹.

The charges that matter most to a member are the ones that are not there. Citysave's summary of charges lists membership, joining, loan arrangement, direct debit, mobile app and early settlement of a loan as free, and it does not charge for benefit payments directed to your account³. Because credit unions are not-for-profit and member-owned, the pricing model tends to be built around interest on loans and a share of surplus rather than a list of account fees, though each credit union sets its own terms¹⁰.

If you are comparing this with a bank, the current accounts guide and the savings accounts guide set out how those products work elsewhere. The credit unions guide explains the sector as a whole.

Savings accounts and how dividends are paid

Saving with a credit union is not quite the same as saving with a bank. Instead of interest, a credit union normally pays a dividend once a year, and the amount depends on how much you have saved and how much surplus the credit union has made¹¹. Dividends are the members' share of profit, distributed annually, and they are not guaranteed¹².

Citysave declares a dividend for members each year, announced at its annual general meeting¹³. The rate is set by the board after the year end and depends on how the credit union has performed, so it is not a rate that can be locked in when you open an account. Across the sector, dividends are usually paid annually and are voted on by members at the annual general meeting⁸. For the current declared rate, Citysave's own tools and guidance page is the place to check¹³.

A few practical rules sit around Citysave savings. Withdrawals to third-party accounts are not allowed, savings accounts cannot fall into a negative balance, and if one does, it is expected to be put right within fourteen days of the credit union telling you⁹. Citysave also states that it accepts no liability for loss or inconvenience caused by withdrawal delays outside its control⁹.

Junior Saver accounts for children and grandchildren

Citysave offers a Junior Saver account so members can save for a child or grandchild, described as a dedicated sub-account within your Citysave membership where you save little and often for a child's milestones⁴. The account is aimed at existing members who want to build a nest egg for a child or grandchild⁴.

The terms allow a member to open a Junior Savings account on behalf of a child under sixteen, subject to the account's own terms and conditions⁹. That age boundary is common across the sector: one credit union's junior account, for example, runs from birth up to the age of 16, and adults can open accounts on behalf of children, grandchildren, nephews, nieces or any other young person they choose¹⁵.

For a saver thinking about where a child's money should sit, the savings guide covers the general options and the ISAs guide explains tax-free accounts, including junior versions. A credit union junior account is a savings account, not an investment, so the money does not rise and fall with markets.

Citysave loans: what you can borrow for

Citysave lends for almost any purpose, with loans from £100 to £25,000². The credit union's own loan calculator lets a member estimate repayments and see how a loan would fit their budget before applying¹³. That range is wide by credit union standards: one comparable credit union caps its standard loan at £5,000 depending on status, so Citysave's ceiling is higher than some peers¹⁶.

There are three routes in, and they suit different circumstances.

The link between saving and borrowing is the defining feature of credit union lending. Independent guidance notes that if you join a credit union and save with it, you can apply to borrow once you have proved you are a reliable saver, and that members can usually borrow at least two or three times the amount they hold in savings, depending on the credit union's loan policy¹⁴. Credit unions are also widely described as an alternative to payday loans for people who cannot get mainstream credit¹⁸.

What Citysave will not lend for, and who it cannot lend to

Citysave does not offer business loans, joint applications, or loans for a deposit on a house or flat². The exclusion on deposits matters if you are saving towards a home: a credit union personal loan is not a route to a mortgage deposit, and the mortgages guide and home buying guide cover how deposit rules work.

It also cannot lend to applicants with a very recent history of debt problems, including bankruptcy orders, debt relief orders, active IVAs, county court judgments within the last 12 months, or a debt management plan². That is a firm line rather than a judgement about credit scores, and it means some people who most need affordable credit will not qualify at the point they apply.

There are also limits on what you can do with the money once it is in. Unsecured consolidation loans generally cannot be used to buy property or make mortgage payments, and housing benefit cannot be used towards a mortgage⁶. Secured loans, by contrast, are sometimes available to people with a poor credit history who would not get an unsecured personal loan, but they put your home at risk if repayments stop²¹.

If you are dealing with problem debt, free help exists. Citizens Advice offers free advice on debt and other money problems, and can check whether you are missing out on benefits²³. StepChange and National Debtline also provide free debt advice, and the Financial Ombudsman Service can look at complaints involving cost of living difficulties²⁴.

Who can join Citysave: living or working locally

You are eligible to join Citysave if you live or are employed in the locality of Birmingham, meaning a B postcode, or in the county of Warwickshire¹⁹. That is the credit union's common bond, the rule that decides who can join.

Every credit union works this way. Membership is based on a common bond, which might be living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union²⁶. The bond determines who can join, and it is what keeps a credit union tied to a community rather than open to anyone¹⁰.

The rules on common bonds have been loosening. The Building Societies Association has reported that eligibility changes would widen access, including to students, local workers and relatives of existing members, reflecting the way people live and work now²⁷. If you are outside Citysave's area, the credit unions guide explains how to find one that covers where you live or work.

Saving through your employer's payroll

If your employer is a Citysave Payroll Partner, you can save directly from your pay, which the credit union describes as simple, automatic and stress-free¹. Payroll deduction is also listed as a deposit method in its savings terms, available to members whose employer is part of the scheme⁹.

Citysave publishes several payroll partnerships. Birmingham City Council says it strongly supports the principle of regular savings as part of financial wellbeing and has offered employees access to payroll savings with Citysave¹⁹. Warwickshire County Council has worked in partnership with Citysave for six years on a staff payroll deduction saving scheme, and St Basils has worked with the credit union for a number of years to promote savings and small loan agreements through salary deductions¹⁹.

The Payroll Savings Account deducts savings directly from pay for members employed by a payroll partner⁴. For anyone whose employer runs a scheme, this is the lowest-effort way to build the savings history that credit union borrowing depends on.

How to join and apply for a loan

Joining starts with an application form. Citysave asks applicants to complete a simple online application form, and its terms confirm that applications can be made online or by completing a paper form¹⁹. Its team reviews membership applications and aims to respond within one working day¹⁹.

Once you are a member, borrowing follows a similar route. Citysave says it will let you know its decision within two working days of receiving all your information, and that approved funds are transferred to your bank account by 5pm that business day². Timings elsewhere in the sector vary more widely: one credit union quotes 7 to 10 days for a decision once documents are in and the form is filled in correctly, and another says most decisions take three working days, up to seven when busy or complex¹⁶.

Some credit unions also take part in local authority debt schemes, where residents are pointed to a participating credit union to apply for help with council tax arrears²⁹. That route runs through the council or the credit union rather than Citysave's own application form.

Complaints and how Citysave handles them

Citysave's complaints policy sets out how to raise a complaint and what happens next. You can contact it by telephone on 0121 616 6200, by email to enquiries@citysave.org.uk, or in writing to Citysave, The Colmore Building, 20 Colmore Circus Queensway, Birmingham B4 6AT³⁰.

If a complaint cannot be resolved straight away, Citysave says it will acknowledge it within three working days of receipt and provide a final resolution within eight weeks³⁰. It also reports all complaints received to the Financial Conduct Authority³⁰.

If you are unhappy with the final response, or eight weeks pass without one, the Financial Ombudsman Service is the free, independent route for complaints about financial firms, including those involving cost of living difficulties²⁵. For debt problems sitting behind a complaint, Citizens Advice offers free advice on debt and other money problems, and can check whether you are entitled to benefits you are not claiming²³.

How your savings are protected

Savings with Citysave are protected by the Financial Services Compensation Scheme, up to £120,000⁴. Citysave describes its savings as FSCS protected, and the scheme covers credit union savings in the same way as savings with banks and building societies¹⁹.

The FSCS limit is per person, per firm, so if you hold savings in more than one institution the limits are separate. If a bank, building society or credit union fails, the FSCS says you will get your money within seven working days³². Credit unions are also fully insured against fraud, which is a separate protection from the compensation scheme³¹.

Checking a firm on the FCA Register before saving is the way to confirm that FSCS protection applies.