How to join a credit union: ID, fees and minimum balances

Joining a credit union is usually straightforward, but it works differently from opening a bank account. You do not just sign up: you become a member of a financial co-operative owned by the people who use it, and each credit union only accepts members who share a "common bond" with its existing members¹. That bond is often living or working in a particular area, but it can also be your employer, your trade union or another association².

The practical steps are simple. You find a credit union you are eligible to join, contact it to confirm what it needs, complete an application, prove your identity and address, and pay any small fee or first saving it asks for. Some credit unions charge a one-off joining fee of a few pounds, some ask you to save a set amount instead, and some charge nothing³. Once you are a member you can save with the credit union and, depending on its rules, apply to borrow.

Who can join: the common bond

Anyone can become a credit union member in principle, but you must share a common bond with the other members¹. All credit unions in the UK may only accept members who have one². The bond is the thing members have in common, and MoneyHelper lists the usual kinds: living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union³. Citizens Advice gives similar examples: living or working in the same area, working for the same employer, or belonging to the same church, trade union or other association⁶.

Because each credit union defines its own bond, eligibility varies enormously between them. Capital Credit Union says its common bond means most people in the UK can become a member, because you can join if you work in an eligible UK occupation, have retired from one and receive a private pension, live in the same household as an existing member, or belong to a listed partner organisation⁷. Its membership terms also allow anyone living or working in its common bond area, employees of its partner employers, and members of Community Trade Union, from age 16⁸. A credit union's rules may even allow it to have more than one common bond⁶.

The rules are set to widen. HM Treasury plans announced in March 2026 will raise the credit union membership limit from three million to ten million people and widen eligibility to include students, local workers and relatives of existing members⁹. Until then, the practical position is this: if you do not meet a credit union's bond yourself, you may still get in through someone who does. Anyone in the household of a person with a common bond can usually join¹⁰, and if one family member meets the bond and has joined, other family members living at the same address can usually join too⁴.

One limit is worth knowing. A credit union is not required to open an account for a person who cannot fulfil its membership criteria¹¹, so being turned down by one credit union does not stop you applying to another. The dedicated guide to the common bond explains the types in more detail, and finding a credit union you can join covers the search.

Ways to apply: online, by app, by phone, by post or in person

There is no single application route: each credit union runs its own process. The universal first step is to visit or call your chosen credit union to confirm what information you need to join¹. Beyond that, the options depend on the credit union's size and setup.

Enterprise Credit Union also lets new members join in branch with two forms of identification if they prefer not to join online²¹. Falkirk District Credit Union sets a deadline in its process: once it receives your online application it contacts you to request ID, and if the ID is not received within 7 days the application is withdrawn. A welcome email with your membership number follows, and the credit union asks you to allow 2 working days for email confirmation¹⁶.

Not every credit union offers every channel. Some operate online and phone banking, some run a payroll partnership with your employer, and some have a local branch or service point you can walk into, or a combination of all three²². ABCUL, the trade body, describes the same range of access routes²³. If travelling is difficult, or you would rather not apply online, check the channels before choosing a credit union. Joining through your employer explains payroll schemes, and payroll deduction or paying in yourself compares the two ways of saving.

Identification and information you may need

Credit unions are required by law to verify the identity and address of all new members. Keep Credit Union, for example, states that verification is normally done using copies of documents such as statements or a driving licence, sent by email or post or uploaded to an online account²⁴.

The documents asked for are usually the same kinds a bank would want. MoneyHelper says you will usually need to provide two recent documents to prove your identity and address, and gives examples: a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill³. Individual credit unions set their own lists:

• Pennyburn Credit Union asks for a valid photo ID and proof of address dated within the last 3 months, brought to one of its offices¹⁹.
• Faughanvale Credit Union accepts a current driving licence, a valid passport, or an Electoral ID Card that includes a photo, and asks new adult members to complete an Adult Membership Form. It also encourages new members to complete a Nomination of Beneficiary Form, which says who should receive your shares if you die²⁵.

Because the lists differ, the safest approach is to contact the credit union before you apply and ask exactly what it wants¹. If you do not have a passport or driving licence, alternatives such as a bus pass, birth certificate or recent bills may be accepted³. If you are opening an account while leaving a difficult or abusive relationship, some credit unions, like some banks, will accept alternative evidence of identity and address, and Surviving Economic Abuse publishes guidance on opening a new account safely²⁶.

What joining costs: joining fees, annual fees and first savings

Joining a credit union usually costs very little, but the charges come in three forms and it is worth knowing which apply to you.

A one-off joining fee. Willowfield Credit Union charges a joining fee of £2, payable on joining for in-person applications²⁰. MoneyHelper describes the general pattern the same way: becoming a member normally means being asked to pay a small fee, for example £2, or to save a certain amount, such as £10³.

An annual membership fee. Some credit unions charge a yearly fee for membership. Others do not: Keep Credit Union advertises free membership with no annual fee²⁷. Where a fee exists it is set by the credit union itself, so the amount and the date it is collected vary. Ask the credit union directly when and how it takes the fee.

A minimum saving rather than a fee. Many credit unions ask new members to buy at least one share, which simply means depositing a small amount of savings. The £10 figure MoneyHelper gives as an example is of this kind³. Your savings are called "shares" because, as a member, you own part of the credit union; the money remains yours to withdraw under the credit union's rules. See credit union savings accounts for how shares work.

Separately from membership fees, some credit union current accounts carry a monthly charge. Research by the University of Bristol found credit unions that ran current accounts typically charged a modest monthly fee of £3 to £5²⁸. That is an account charge, not a membership fee, and it applies only if you open that type of account. Current accounts and prepaid cards from credit unions covers these accounts in detail.

Leaving early: closing charges and getting your money back

Membership and joining fees are generally not refundable, so treat them as the cost of joining rather than a deposit. Some credit unions also charge for early closure: Keep Credit Union's terms include a £10 administration charge for closing an account within 12 months of starting membership²⁴. Your savings themselves are different: they stay yours throughout and are paid back to you when you close the account, subject to the credit union's withdrawal rules.

A warning about a different kind of fee, because it is sometimes confused with credit union charges. If you are ever asked to pay an upfront fee to a credit broker who promises to find you a loan, be careful. Debt Advice Foundation explains that if you have not entered into a relevant loan six months after the credit broker introduced you to a lender, you have a statutory right to a refund of that upfront fee²⁹. Credit unions do not work through paid loan introducers of this kind, so an upfront "loan fee" demand made in a credit union's name is a red flag.

If the worst happens and your credit union fails, your savings are protected. The Financial Services Compensation Scheme covers deposits with credit unions, and in most cases FSCS will return your money within seven working days from the date the credit union failed³⁰. FSCS gives the same seven working day timescale for banks, building societies and credit unions generally⁵. You can check whether a particular credit union is covered using the FSCS protection checker⁵.

Borrowing as a member: some lend at once, others after a waiting period

You must be a member of a credit union to get a loan from it¹⁰. Beyond that, the rules differ. The Building Societies Association notes that some credit unions will lend to you as soon as you become a member, while others only lend after you have saved with them for a set period, and that any loan is still subject to an affordability check on the money you have left after paying your bills⁴.

Individual credit unions show the range. Keep Credit Union states you can apply for a loan once you have been a member for 3 months²⁷. Business Debtline's guidance on household budgeting makes the general point: if you join a credit union and start saving with them, you will also be able to apply to borrow money once you have proved you are a reliable saver³¹. Advice NI puts it similarly, noting credit unions allow you to borrow at least twice more than you have saved once you have been a member for a certain length of time³². Business Debtline's debt consolidation guides say members can usually borrow at least two or three times the amount held in savings, depending on the credit union's loan policy³³. Shelter Cymru adds that you usually need a history of saving with a credit union before you can borrow, particularly for long-term loans and mortgages³⁴.

The waiting period is not a test you can fail by applying too early; it simply reflects that many credit unions lend against a savings record. If you need to borrow sooner, borrowing as a new member and do you need savings to get a loan? cover the options, and types of credit union loan explains what you can apply for. Whatever the waiting period, failing to repay has consequences: Citizens Advice warns that if you do not repay a credit union loan, the credit union might cancel your membership and take you to court⁶. See falling behind on a credit union loan if you are struggling.

Junior membership for under-18s

Many credit unions take members under 18. Drumchapel Credit Union's terms state that young people under the age of 18 are able to join the credit union³⁵. Junior membership usually comes with a junior savings account, held in the child's name and run by the credit union under its own rules. RMT Credit Union, for example, runs a Junior Deposit Account, and you can apply for a membership form by emailing the credit union or downloading a form¹⁷.

In Northern Ireland the rules have a particular feature. A research paper for the Assembly's Enterprise, Trade and Investment Committee records that limited pre-membership deposits may be accepted from children under 16, to be held in trust until the child turns 16³⁶. In practice this means a child's money may be held for them before they become a full member at 16.

If you are saving for a child rather than with them, the junior savers accounts page compares the options, and nominating someone to receive your shares explains the beneficiary form many credit unions encourage adult members to complete.

What membership gives you

Membership is more than an account. Because a credit union is a co-operative owned by its members, joining makes you a part-owner, and membership of a credit union is based on the common bond that members share¹. Members have a say in how the credit union is run, including voting rights, regardless of how much each person has saved: the principle is one member, one vote, which is what distinguishes credit unions from banks²³.

Day to day, membership gives you access to whatever the credit union offers: savings accounts, loans, and in some cases current accounts and prepaid cards³. MoneyHelper notes that some credit unions offer current accounts you can use to receive money and pay bills³. Universal Credit, for example, is paid once a month directly into a claimant's bank, building society or credit union account³⁷, so a credit union current account can serve as the account benefits are paid into. Getting money out varies by credit union: options include cashing a cheque at a local Post Office, cash from a local credit union office, payment directly into a bank account, or a debit card at a cash machine if the credit union operates a current account⁴.

Membership can also carry benefits beyond the account itself, such as life savings insurance and loan protection insurance, which many credit unions provide at no direct cost to the member. What is on offer differs between credit unions, so check before you join. The full range is described in what credit unions offer.

Where to get free help

You do not need to pay anyone to join a credit union. The application is made directly to the credit union, and any fee goes to the credit union itself. Free, impartial help is available at every stage:

• Finding a credit union: search services such as Find Your Credit Union list credit unions and explain what information you need to join¹. Our credit union directory also lists them.
• Understanding accounts and charges: MoneyHelper, the free government-backed money guidance service, explains credit union current accounts, the documents you may need and the fees you may pay³.
• Debt and borrowing questions: StepChange, Citizens Advice and Business Debtline all publish free guidance on credit union loans and alternatives¹⁰.
• Checking protection: the FSCS protection checker confirms whether your money is protected with a particular credit union⁵.

If you have a complaint about a credit union that cannot be resolved with it directly, the Financial Ombudsman Service handles complaints about credit unions, and consumer protection in UK financial services explains how to use it. If money is tight, debt: a complete guide sets out where free debt advice is available.