Jubilee Tower Credit Union

Jubilee Tower Credit Union is a not-for-profit credit union based in Darwen, Lancashire, serving anyone who lives or works in Blackburn with Darwen. It has been running since 1996 and pays a dividend on members' savings rather than interest, with the rate set each year by the members at the annual general meeting¹. It previously traded as Darwen Tower Credit Union².

It offers savings accounts with no minimum deposit and no monthly or annual charges, a separate Christmas savings account, junior savings for children, and loans including a payroll deduction scheme called FairQuid for staff at named local employers¹. Savings are covered by the Financial Services Compensation Scheme¹.

What Jubilee Tower Credit Union offers members

Jubilee Tower Credit Union is a member-owned co-operative rather than a bank. It describes itself as a not-for-profit, community-based financial services provider, and says that becoming a member makes you a shareholder, which is what entitles you to a dividend on your savings¹. That structure is common to credit unions generally: they are owned and controlled by their members, and they exist to serve a defined local or workplace community rather than to make a profit for outside shareholders⁸.

Its product range is deliberately narrow. There is a main savings account, a second savings account members can open at no extra charge, a Christmas savings account, junior savings accounts for children, and loans. The FairQuid payroll scheme, run with local employer WEC Group, adds saving and borrowing directly from pay for staff at a handful of named organisations¹.

Because it is a credit union, the savings and borrowing sides are connected. Members save, and once they have built up a record of saving they can apply to borrow. Credit unions generally allow members to borrow two or three times as much as they have saved, at a low interest rate⁹. That is a different model from a bank, where a deposit account and a loan are separate products with separate pricing.

For a wider picture of how these organisations work, see credit unions: a complete guide.

Savings accounts: flexible access with no minimum deposit

The main savings account is designed to be opened with whatever you have. Jubilee Tower Credit Union states there are no minimum deposit amounts, no monthly charges and no annual charges on its savings accounts, and that members can open a second savings account with no additional charge if they want to keep money separate¹.

Withdrawals are flexible. Available savings can be withdrawn at any time by same day bank transfer, and the credit union says there are no withdrawal caps or penalties¹. Withdrawals can be requested by visiting the office, by telephone or by email, and are paid to a bank account by faster payment, usually processed the same day as requested⁶. You can also ask for a free statement by post or email for your savings or loan at any time⁶.

That combination, no minimum, no notice period and no penalty, is typical of credit union instant access accounts rather than universal across the sector. Other credit unions describe instant access without penalties, no minimum payment and no commitment to save regularly, and no minimum savings requirement¹⁰. The Consumer Council notes that credit union savings accounts are generally straightforward, with profit shares distributed annually as a dividend¹³.

The trade-off is that credit unions are small and local. There is no branch network, no cash machine access and no app-based instant transfers in the way a high street bank offers. Money moves by transfer to a nominated bank account, which means you need a bank account elsewhere to receive withdrawals.

Christmas savings and second savings accounts

Jubilee Tower Credit Union offers a Christmas Savings account to any member who wants to keep Christmas money separate from their main savings¹. Members can also open a second savings account with no additional charge, which can be used for a different goal¹.

This kind of ring-fenced account is a common credit union product. Credit unions describe dedicated Christmas and holiday savings accounts, second accounts used as a Christmas club or a rainy-day account, and separate accounts for different goals such as budgeting or Christmas¹⁰. Some credit unions offer several types of savings account side by side, including main saver, Christmas, junior and holiday or special occasion accounts¹⁴.

Where credit unions differ is in the rules attached to the Christmas account. Some open the account for deposits from 1 January each year, with new members able to start from when they join, and require you to be an enrolled member before you can become a Christmas saver¹⁵. Others restrict the account to members of that specific credit union¹⁷. The practical effect is the same: the money is set aside, and you draw it out for the season rather than dipping into it in between.

If you are comparing this with a bank or building society Christmas saver, the difference is usually access and structure rather than headline return. See savings accounts: a complete guide for how regular saver and notice accounts work elsewhere.

How dividends on savings work

Credit union savings do not pay interest. Instead, if the credit union makes a profit, it can pay a dividend to members, and that dividend is decided by the members at the annual general meeting⁶. Jubilee Tower Credit Union announces its dividend rate at the AGM and applies it to accounts the following month⁶.

The mechanics matter more than the number. Credit unions generally pay a dividend annually, and the amount depends on how much you have saved and how much profit the credit union has made¹⁸. The profit is shared among savings accounts rather than paid out to outside shareholders, with some retained to improve services¹⁸. One credit union guide notes that a successful year could see members receive a dividend as high as 3%, which shows the range rather than a promise⁸.

Two things follow from that. First, a dividend is not guaranteed: it depends on the credit union's results and on the members approving it. Second, it is not a rate you can lock in, because it is declared after the year it relates to. A junior savings account at another credit union describes the same structure, an annual dividend dependent on profitability and approval through the AGM¹⁹. For the current rate, ask the credit union or check its own website.

Loans and saving while you borrow

Jubilee Tower Credit Union lends to members, and its FairQuid payroll deduction loans are aimed at employees of specific local employers. It says it aims to have a decision for you within 1 working day on those loans⁴. For its other loans, it aims to have a decision within 4 working days of the application being submitted, with the outcome sent by text message or email⁶.

The credit union also operates a save-as-you-borrow scheme, so that savings can keep growing while a loan is being repaid⁴. That is a feature other credit unions build into their personal loans too, describing it as building savings as you repay²⁰. It matters because it means borrowing does not stop you building the savings record that supports future borrowing.

On eligibility, Jubilee Tower Credit Union states that having bad credit does not mean you will not be accepted for a loan, and that it helps people who may previously have struggled with credit to improve their rating⁶. Credit unions generally require you to be a member before you can borrow, and some ask you to build up savings first²¹. One budgeting guide puts it plainly: if you join a credit union and start saving, you will be able to apply to borrow once you have proved you are a reliable saver²³.

Credit union loans are not automatically the cheapest option. Independent guidance notes that they are often more expensive than personal loans from a bank or building society²⁴. They are usually positioned as an alternative to high-cost credit such as payday loans rather than as a rival to the lowest personal loan rates¹⁸. For how the wider market compares, see loans: a complete guide.

Membership costs and charges

Jubilee Tower Credit Union states there are no monthly or annual charges on its savings accounts, and no minimum deposit amounts¹. It does not publish a joining fee on the pages covered here, so the cost of membership itself is best confirmed with the office.

Other credit unions show the range of what membership can cost. Another charges an annual membership fee of £5¹⁷. A third charges a £1 joining fee for junior members¹⁹. These are small sums, but they are not uniform, and the annual administration fee in particular is set by the members rather than fixed in advance.

The charges that matter more in practice are the ones attached to borrowing. Credit unions price loans individually rather than publishing a single rate for everyone, and the cost depends on the amount, the term and your circumstances. Jubilee Tower Credit Union does not publish loan rates on the pages covered here, so the figures for today are on its own site.

There is no charge for the things members most often ask about: statements are free on request by post or email, and there are no withdrawal penalties¹.

Who can join: living or working in Blackburn with Darwen

The membership test is a common bond, and for Jubilee Tower Credit Union it is geographic. Anyone who lives or works within Blackburn with Darwen can apply to become a member¹. For adult membership, the credit union states that anyone aged 16 or over who lives or works within Blackburn with Darwen is eligible to apply³.

Junior savings accounts have their own rule: they are for children who live within Blackburn with Darwen⁵. That is a narrower test than the adult one, which accepts people who work in the area as well as those who live there.

The FairQuid payroll schemes add a second route in. The payroll deduction loan scheme is available to all workers at the WEC Engineering Group, Blackburn with Darwen Borough Council, Blackburn with Darwen YouthZone, Staci and Heritage Envelopes who have been with the employer for at least 12 months⁴. The payroll saving scheme is available through Jubilee Tower Credit Union to staff of WEC Group, Blackburn with Darwen Borough Council, Blackburn YouthZone, Staci and Heritage Envelopes⁵.

If you are outside the area, a credit union with a different common bond may cover you. The trade body's finder at findyourcreditunion.co.uk lists credit unions by location, and the Association of British Credit Unions can be reached on 0800 015 3060⁸.

How to join and the ID you need

Joining is done in person. Jubilee Tower Credit Union states that anyone wanting to apply for membership can visit the main office in Darwen, that no appointment is needed, and that you can drop in whenever is most convenient³.

Take identification with you. The credit union asks for a valid form of photo ID and at least two valid proofs of address, which could be a recent bank statement, a utility bill, a work reference letter, an HMRC or DWP letter, or a letter from a supporting agency⁶. Its joining page puts the same requirement slightly differently, asking for a valid form of photo ID and a couple of letters addressed to you at your home address, such as a recent bank statement, utility bill, HMRC or DWP letter, or anything else from an official source³.

That two-part requirement, photo ID plus proof of address, is standard across credit unions. Jubilee Tower asks for a valid form of photo ID and a couple of letters addressed to you at home, such as a recent bank statement, utility bill or HMRC/DWP letter¹⁹. Another asks for photo identification and proof of address dated within the last six months¹⁶.

If you are gathering documents and are unsure what counts, official guidance on verifying identity for Universal Credit accepts a wage or pension slip that includes the payee name and National Insurance number and is dated within the last 6 months, which gives a sense of the kind of paperwork that is normally accepted²⁰.

Ways to pay in and withdraw

Jubilee Tower Credit Union members can save by paying cash in at the office, by setting up a standing order, by BACS payment into their account, or by debit card payment over the phone¹. Withdrawals can be requested by office visit, telephone or email, and are paid to a bank account by faster payment, usually processed the same day as requested⁶.

Payroll deduction is the other route, and it is the one the credit union promotes most. Employees can continue to save through the payroll deduction scheme even once their loan has been repaid, so the saving continues after the borrowing ends⁴. Other credit unions describe the same appeal, that saving through payroll means you do not see the money leave your pay²⁵.

Across the sector, credit union payment methods include payroll deduction, benefit direct accounts, retail payment networks such as PayPoint and PayZone, standing order or direct debit, and cash at local offices and collection points⁸. Some credit unions also accept direct debit, standing order, cash, cheque or debit card in branches, debit card by telephone, and payments online through a member area¹¹. Jubilee Tower Credit Union's own list is narrower than that, so if a particular method matters to you, confirm it with the office before relying on it.

One practical point: because withdrawals are paid out to a bank account, you need a bank account elsewhere to receive the money. The credit union account is where the savings sit, not where they are spent from.

FSCS protection for members' savings

Savings with Jubilee Tower Credit Union are covered by the Financial Services Compensation Scheme. The credit union states that money with it is safe and secure and covered by the scheme, and separately that all savings with it are covered¹.

That protection is not unique to this credit union. Credit union savings are protected by the FSCS, and shares, which is the legal term for credit union savings, are eligible for protection under the scheme¹⁸. One credit union states the limit as £85,000 per member¹⁷.

The FSCS is the same scheme that covers money in banks and building societies, so a credit union failure is handled in the same way as a bank failure for eligible savers. The limit applies per person, per institution, so savings held with Jubilee Tower Credit Union count separately from savings held with a bank.

On complaints, the credit union says it is fully regulated by the Financial Conduct Authority⁶. If something goes wrong and the credit union does not resolve it to your satisfaction, the Financial Ombudsman Service can look at complaints about firms it regulates. For how that process works and where the limits of protection lie, see consumer protection in UK financial services.