Keep Credit Union

Keep Credit Union is a member-owned credit union for people who work for the Co-operative Group and their close relatives. It offers the two things every credit union offers: a savings account and loans¹. Membership is free, there is no annual fee, and you can apply for a loan once you have been a member for three months².

Savings with Keep Credit Union do not pay interest. Like other credit unions, it pays a dividend instead, once a year, when the credit union has performed well³. The dividend is proposed by the board and voted on by members at the annual general meeting, so it is not guaranteed and the amount depends on how much you have saved and how the credit union has done⁴.

Your money is protected by the Financial Services Compensation Scheme, up to £120,000 per person across all accounts you hold with the credit union⁵. Keep Credit Union also appears on the Bank of England's list of UK credit unions⁶.

What Keep Credit Union offers its members

Keep Credit Union is a credit union, which means it is a group of people connected by a common bond who save together and lend to each other at a fair rate of interest¹. It is not for profit, and every member has one vote regardless of how much they have saved¹. The credit union's own savings page sets out the accounts it runs, and its loans page sets out the borrowing it offers⁹.

Across the sector, credit unions offer savings accounts and loans as standard, and many add junior savings accounts, Christmas savings accounts, prepaid debit cards, insurance products and cash ISAs, with some larger ones offering current accounts and mortgages¹. Services vary by branch and by credit union, so what is available at Keep Credit Union is best checked on its own site¹⁰.

If you are comparing what a credit union offers with what a bank offers, the credit unions guide explains the model, and the savings guide covers the account types you will see. For borrowing, the loans guide sets out how lenders assess applications.

Saving with Keep: dividends instead of interest

Credit union savings accounts either pay interest or a share of any profits, and most pay a dividend rather than a fixed rate¹¹. Keep Credit Union works the same way: instead of interest, a dividend is paid when the credit union performs well³. The dividend is proposed by the board of directors and voted on by members at the annual general meeting⁴.

That structure matters for what you can expect. A dividend is not a guaranteed rate, and it is not set in advance. One credit union explains that the rate for each financial year is agreed retrospectively at its AGM each spring, depending on financial performance¹². Another describes dividends as a share of profits agreed at each AGM but not guaranteed¹³. The amount you receive depends on how much you have saved and how much profit the credit union has made¹.

Credit unions are also required to encourage members to save regularly, and saving is what builds the pool of money that funds loans to other members¹⁴. Keep Credit Union's own limits are in its terms and conditions⁷.

Keep Credit Union loans: how borrowing works for members

You can apply for a loan once you have been a member for three months, and Keep Credit Union recommends waiting at least three months between loan applications². Repayments are taken directly from your salary, so the loan is repaid steadily over time². As a member and owner, you would also qualify for any loan interest rebates².

Credit unions fund loans from members' savings, which is why the model works differently from a bank¹. You must be a member to borrow, and the amount you can borrow is usually linked to what you have saved: typically at least two or three times your savings, depending on the credit union's loan policy¹⁴. Credit unions can lend small amounts for any purpose, and some lend larger sums over longer periods, for example for a car or home improvements¹. You usually need a history of saving with a credit union before you can take a long-term loan or a mortgage¹⁶.

The three-month wait is not unusual. Some credit unions lend as soon as you become a member, while others ask you to save for a set period first, and affordability is checked against the money you have left after paying bills¹. One credit union asks members to save for at least two months before approving a loan, and another treats members as established after a minimum of eight weeks¹⁷.

Fees and charges: what you pay and when

Membership of Keep Credit Union is free, with no annual fee to maintain it². The charge that catches people out is closing an account early: there is a £10 administration charge for closing an account within 12 months of starting membership⁷. That is a common pattern in the sector, and it exists to stop people opening an account purely to get a loan and then leaving.

On borrowing, Keep Credit Union states that it does not agree with hidden charges such as arrangement or early settlement fees². Other credit unions say the same: one states that members can pay off a loan early at any time with no financial penalties or fees, and another advertises no admin fees or charges for paying off a loan early¹⁹. If you are comparing a credit union loan with a bank loan, the absence of an early repayment charge is one of the practical differences.

Credit unions can charge for other things, and a current account from a credit union may carry a monthly fee²¹. Fees for things like replacement cards, same-day payments or foreign exchange vary by provider, so the terms and conditions are the place to check before you commit⁷.

If you are joining mainly to borrow, factor that in before you close the savings account afterwards.

Who can join Keep Credit Union

To join, you need to work for one of the employers listed in Keep Credit Union's common bond, or be a close relative of an existing member who works for one of those employers and live at the same address as that relative⁷. Applicants must be over 16⁷. The common bond is the defining feature of every credit union: members share a link such as the area they live in, the industry they work in or the employer they work for¹¹.

Credit unions generally allow family members living at the same address to join once one person meets the common bond and has joined¹. Anyone in the house of a person with a common bond can usually join¹⁴. Eligibility across the sector has been widening to include students, local workers and relatives of existing members, reflecting how people live and work now²².

If you do not qualify for Keep Credit Union, the credit unions guide explains how to find one you do qualify for, and the getting started guide covers the basics of opening an account.

Managing your account: the Incuto app and withdrawals

Keep Credit Union members manage their accounts through the Incuto app, and withdrawals can be requested in writing through the website, the mobile app or by post⁷. Withdrawals are usually paid out within 24 working hours of receipt⁷. That is the practical answer to the question most members ask: money is not instant, but it is not slow either.

Credit unions more broadly offer paying in and taking out cash at a branch, having wages, benefits and pensions paid in, online, mobile or telephone banking, and budgeting advice and support, usually free¹¹. Services vary by branch, and can include savings accounts, loans, foreign exchange and prepaid debit cards, with some offering current accounts¹⁰. One credit union lets members withdraw through its app, request withdrawals to a bank account in their own name, use internet banking, or complete a withdrawal request form²³.

If you have a loan with Keep Credit Union, withdrawals are subject to the terms of that loan⁷. Credit unions commonly hold back part of your savings while a loan is outstanding: one retains shares up to the value of the outstanding loan until the loan and interest are repaid in full, and another requires members with a loan to keep at least four weeks or one month's repayment in savings as security¹³.

How to join and open a savings account

Joining a credit union normally means proving you share the common bond, then opening a savings account. Keep Credit Union's own joining requirements are set out in its terms and conditions⁷.

The process at most credit unions is straightforward. One lets you apply for membership and your first savings account at the same time in a single online process, followed by identity and eligibility checks and a first deposit²⁵. Another accepts applications online, at a branch or by telephone²⁶. A third lets you apply online or join in branch with two forms of identification¹⁹.

Once you are a member, you stay a member. One credit union notes that people leaving their qualifying employment can still join as long as they do so before leaving, and then remain a member for life²⁷. If you are close to leaving a qualifying employer, that timing matters.

Rules for members who borrow and save at the same time

Holding a loan and savings with the same credit union changes what you can do with your money. Credit unions commonly retain part of your savings as security while a loan is outstanding: one retains shares up to the value of the outstanding loan and does not allow withdrawal of those shares until the loan and interest are repaid in full¹³. Another requires members with a loan to keep a minimum of four weeks or one month's loan repayment in savings, and cannot withdraw funds until that level is reached²⁴.

If a loan falls into default, the position is firmer still. One credit union may use any balances in a member's savings account to reduce or repay a loan in default, with notification and an opportunity to make repayments²⁴. Another states that on default, cessation of employment, a Trust Deed or bankruptcy, the entire outstanding balance becomes due and payable immediately, together with all the interest that would have been payable if the loan had run its full term¹³.

The upside of borrowing and saving at the same time is that you keep building a savings record, which is what credit unions look for before lending larger amounts over longer periods¹⁶. The credit union's aim is to encourage all members to save regularly, and saving is what makes the next loan possible¹⁴.

FSCS protection and regulation of your savings

Keep Credit Union is authorised by the Financial Conduct Authority and has been authorised since 2 July 2002⁸. It also appears on the Bank of England's list of credit unions incorporated in the UK⁶. Credit unions are not for profit community lenders providing affordable loans and savings²⁸.

Savings with a credit union are protected by the Financial Services Compensation Scheme, the same scheme that covers banks and building societies²⁸. Credit unions are also fully insured against fraud²⁹. If you are a UK-based customer with a UK-authorised credit union, the FSCS still protects your money³⁰.

The scheme exists to protect you if your bank, building society or credit union runs into financial difficulty³¹. It does not cover everything a financial firm does: FSCS protection extends to areas such as mortgage advice, but not to every product or every kind of loss³². For savings, the position is clear: your money is covered up to the limit, and the credit union's own terms confirm it⁷.

If you need free, impartial help with money problems, MoneyHelper offers guidance on credit unions and on choosing an account²¹. If you are struggling with debt, StepChange and National Debtline both provide free advice, including on how saving interacts with a debt management plan¹⁴.