MoneyWise Credit Union

MoneyWise Credit Union offers savings accounts and loans to people in the North East of England. It is a credit union rather than a bank: a not-for-profit financial cooperative owned by its members, and it trades under two local names, Tees Credit Union part of Moneywise and South Tees Community Bank¹. Its website is www.moneywise.org.uk¹.

The products are the familiar ones: you pay money into savings, and you can borrow through loans with interest capped by law. Members' savings are pooled and used to fund loans to other credit-worthy members of the credit union, and any surplus is returned to the membership rather than paid to outside shareholders². Savings held with MoneyWise are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible person, the same protection that applies to money in bank and building society accounts³.

A member-owned credit union, not a bank

A credit union is a not-for-profit financial provider that helps people access banking products like bank accounts, savings and loans, and MoneyWise fits that model: it is a cooperative financial institution run for the benefit of its members⁴. The House of Commons Library describes credit unions as non-profit financial institutions whose members hold savings in the union, and notes that they historically offered simple savings and loan products to financially excluded individuals⁷. That origin still shapes what they do today: providing affordable loans and savings to people who may be poorly served by mainstream banks.

Being a cooperative changes the relationship between the provider and the customer. As a credit union member you are in control of your own finances and have a say in how your financial service provider is run⁸. Members' savings are used to fund loans to other credit-worthy members, so the money stays within the community rather than flowing to external shareholders².

There are limits to what a credit union can do. A research briefing for the Northern Ireland Assembly makes the point plainly: a credit union is not a bank and cannot offer overdrafts, mortgages, electronic banking services and payment methods or business loans in the same way as a bank⁹. So if you are comparing MoneyWise with a high street bank, the trade-off is a narrower product range on one side against member ownership and a not-for-profit ethos on the other. For a fuller explanation of the sector, see our guide to credit unions.

Savings and loans at MoneyWise

All credit unions offer savings accounts and loans, and these are the two core products at MoneyWise¹⁰. Savings held with the credit union are known as "shares", and all shares in an affiliated credit union are eligible for protection under the Financial Services Compensation Scheme². Saving with a credit union works much like saving anywhere else: you pay money in, it builds up over time, and you can usually withdraw it when you need to.

On the lending side, credit unions offer loan products suited to individual needs and at rates members can afford⁸. The Welsh Government describes credit unions as not-for-profit community lenders providing affordable loans and savings, and confirms that loans and savings with them are protected by the Financial Services Compensation Scheme¹². Credit unions are also frequently recommended as an alternative to more expensive forms of borrowing: StepChange lists credit unions, budgeting loans, bank overdrafts and salary advances among the alternatives to same-day loans¹³.

MoneyWise operates within a wider movement. There are around 400 credit unions across England, Scotland and Wales, so even if MoneyWise is not the right fit, there may be another credit union serving your area¹⁴. For background on how these products work generally, see our guides to savings accounts and loans.

Who can join MoneyWise

Membership of a credit union is based on a "common bond": something the members share¹¹. Anyone can become a member, but you must share that common bond with other members¹¹. Each credit union has a common bond which determines who can join, and it typically works in one of three ways: living or working in the same area, working for the same employer, or belonging to the same association such as a trade union or church¹⁰.

For a credit union like MoneyWise, rooted in the North East of England, the common bond is most likely to be geographic (living or working in its area) or occupational (working for an employer linked to the credit union). The rules extend to households: anyone in the house of a person with a common bond with a credit union can usually join⁶. Similarly, as long as one member of a family meets the common bond requirements and has joined the credit union, the other family members living at the same address can usually join too¹⁰.

If you are unsure whether you qualify, the credit union can tell you directly, and the findyourcreditunion.co.uk website can help you locate credit unions you may be able to join¹⁰.

How loans from MoneyWise work

Credit union lending starts with membership. 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; either way, affordability is checked against the money you have left after paying your bills¹⁰. This is a deliberate contrast with high-cost lenders: the credit union model is built around proving yourself as a saver first, then borrowing within your means.

Credit union loans can serve many of the same purposes as bank loans. You can apply for a personal loan in person at a branch or by post, phone or online, depending on the provider¹⁶. Some credit unions and partner schemes also help with specific needs: bond loan schemes, for example, lend you the money for a rental deposit in advance and you pay it back over a period of time from your wages or benefits¹⁷. Debt consolidation is another common use: you work out how much you need to borrow to pay off all your debts, apply for a loan for that amount, and if approved use the money to pay back each of your creditors, leaving one monthly repayment to the loan lender¹⁸. The mechanics are the same as consolidating credit card debt anywhere else: you pay off your creditors with money you borrow, then make monthly payments to pay off the loan instead¹⁹.

Because affordability is assessed before lending, a credit union loan is often suggested as an alternative to a payday loan. A payday or pay cheque loan is a short-term, high interest, unsecured loan, and even payday lenders must check your credit worthiness before they give you a loan, roll one over or increase the amount of credit²⁰. A credit union loan is typically repaid over a longer period at a capped rate, which is why debt charities point people towards them¹³.

How charges and interest work at MoneyWise

Credit union interest is capped by law. The amount of interest charged by a credit union can be no more than 3% a month, which works out at an APR of 42.6%²¹. That ceiling applies across the whole sector, so no credit union, MoneyWise included, can charge more than this on a loan. Many charge less, and the rate you are offered depends on the amount, the term and your circumstances, so the figure to check is always the one quoted for your specific loan on the credit union's own website¹.

This cap is the key structural difference between credit union lending and high-cost credit. Because the maximum is fixed in law, the cost of borrowing cannot escalate in the way it can with some other products. Interest on a bridging loan, by contrast, is charged monthly but "rolled up" and repaid in a lump sum at the end, along with the initial loan price and any fees and charges, which is a very different cost structure¹⁷. Credit union loans are normally repaid in regular instalments, so you can see the total cost before you commit.

Beyond interest, credit unions generally keep charges simple, and most also offer free life or loan-protection insurance to members¹⁰. Any fees that do apply, such as late payment charges, will be set out in your loan agreement, and the credit union must tell you what they are before you sign. If you are comparing a credit union loan with other options, our guide to loans explains how loan costs are worked out generally, and free debt advice can help you compare the total cost of each route⁶.

Banking with MoneyWise: online, app and in person

Credit unions vary in how you can bank with them, and the sector has modernised considerably. Depending on the account you have chosen, you can usually manage it online, using an app, over the phone or in person²². Credit union bank accounts commonly let you, for free, pay in or take out cash at the credit union, have money paid in such as wages, benefits and pensions, use online, mobile or telephone banking, and get budgeting advice and support⁴.

The sector offers a spread of access channels: some credit unions provide 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 three²³. For a community credit union like MoneyWise, the in-person element is often part of the point: members who prefer to deal with people face to face, or who need help budgeting, can get it in a way that app-only banks do not offer.

If you need support managing your money, credit union current accounts often come with budgeting help built in⁴. Disability charity Scope also notes that opening an account involves completing an application form online, in person or by phone, which reflects the range of channels credit unions typically offer²⁴. If you want to understand how credit union accounts compare with standard bank accounts more broadly, see our guide to current accounts.

How to join and open an account

Joining a credit union is a two-step process: you confirm you meet the common bond, then you open a membership account. Credit unions typically ask for identification when you join; Enterprise Credit Union, for example, lets people apply online or join in branch with two forms of identification, and this is a common pattern across the sector²⁵. Once you are a member, you can open savings and, when you are ready, apply for a loan.

The practical steps are usually:

1. Check you meet the common bond, whether that is living or working in the credit union's area or another qualifying link¹⁰.
2. Complete an application form online, in person or by phone²⁴.
3. Provide identification, typically two forms of ID if joining in branch²⁵.
4. Pay in your first savings to activate membership.
5. Set up the services you want, such as paying in wages, benefits or pensions⁴.

If you are opening a current account rather than just savings, the process is similar to opening any bank account, and MoneyHelper's guidance on how to open, switch or close a bank account applies equally to credit union accounts²². Once your account is running, you can have money paid in, take cash out and use whatever online or phone services the credit union provides⁴.

Tees Credit Union and South Tees Community Bank: the names MoneyWise trades under

MoneyWise Credit Union trades under two names: Tees Credit Union part of Moneywise, and South Tees Community Bank¹. Both names belong to the same credit union, so an account opened with South Tees Community Bank and savings held with Tees Credit Union are held with one and the same organisation. That matters for protection: the FSCS treats all the eligible money you hold with one firm together when it applies the £120,000 limit²⁶.

The firm has also traded under earlier names, including Tees Credit Union and names tied to its Newcastle roots¹. The council-employee name reflects the occupational roots many credit unions have, where membership began with a single employer's workforce and later widened to the surrounding community¹⁰. If you have held an account under one of the older names, it is the same organisation today.

How your savings are protected at MoneyWise

Savings with MoneyWise are protected by the Financial Services Compensation Scheme. The FSCS protects each eligible person up to £120,000 in total across all the accounts they hold with the credit union³. Joint accounts are also eligible for FSCS protection up to the same limit of £120,000 per eligible person, so each holder is protected separately²⁷. If the credit union failed, the FSCS would repay protected savings automatically or transfer them to another provider.

Because all of MoneyWise's trading names belong to one firm, there is a single £120,000 limit across everything you hold with it, whichever name the account was opened under. The FSCS treats accounts with institutions in the same group sharing a licence as one institution, with the limit applying across all of them²⁶. You can check whether your money is protected using the FSCS's own protection checker; credit unions that can take deposits appear in it, even though some other mutual providers do not²⁷.

On top of FSCS protection, most credit unions also provide free life or loan-protection insurance to members, so a member's savings or loan balance may be protected by insurance as well, subject to the policy's terms¹⁰. The Welsh Government confirms the same picture for the sector: loans and savings with credit unions are protected by the Financial Services Compensation Scheme¹².

Contact, complaints and free help

MoneyWise's website is www.moneywise.org.uk¹, and that is the place to find current contact details, opening hours for branches and service points, and today's product terms. If something goes wrong, complain to the credit union first and give it the chance to put things right; firms must have a complaints process, and our guide to consumer protection explains how the process works and where to escalate an unresolved complaint.

Free, independent help is available whatever your situation. MoneyHelper offers clear guidance online, over the phone and face to face, and MoneyHelper.org.uk provides free, impartial guidance that is backed by government³⁰. The Money and Pensions Service, which runs MoneyHelper, also works with creditors and debt advisers to strengthen how people in difficulty are supported³⁰. If you are struggling with debt, StepChange provides information on credit unions and on the alternatives to expensive borrowing⁶, and Business Debtline notes that joining a credit union and saving with them means you can apply to borrow once you have proved you are a reliable saver³². For a wider look at where to turn, see our guide to debt.