Newarthill Credit Union

Newarthill Credit Union is a members' savings and loans co-operative based at 111-113 High Street, Newarthill, Motherwell. It takes members' savings, called shares, and it lends to members. Loans run from £50 up to £15,000, over terms from one month to 60 months, with fixed repayments, fixed terms and fixed interest rates, and interest charged daily on the reducing unpaid balance¹. Savings earn a dividend when one is declared, and the credit union runs a death benefit fund that in most cases clears a member's loan on death².

It is registered in Scotland, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and its Financial Services Register number is 213880². It appears on the Bank of England's list of UK credit unions⁴.

This page covers what each product does, what it charges, who can join and borrow, how nomination and death benefit work, how to bank safely, and how far your money is protected.

What Newarthill Credit Union offers its members

Credit unions in Northern Ireland have a remit to offer a range of basic financial services such as share accounts, loans and life assurance, and the same broad model applies across the UK movement⁶. In practice a credit union is a savings and borrowing co-operative: members save, members borrow, and the two sides of the book fund each other. The Consumer Council describes credit unions as providing a range of savings and loan services⁷.

Newarthill Credit Union's own offer is narrower than the largest credit unions. Its published products are a savings account held as shares, personal loans, and a senior account, alongside a death benefit fund that covers members' loans and shares¹. Some credit unions go much wider, offering junior savings accounts, Christmas savings accounts, prepaid debit cards, insurance products, cash ISAs and in some cases mortgages⁸. Where a credit union sells insurance it does not underwrite, the cover is arranged with an insurer: New Easterhouse Credit Union, for example, states that loans are protected by CUNA Mutual insurance at no cost to the borrower⁹.

If you are comparing what a credit union can do against a bank, the credit unions guide sets out the model, and the savings and loans sections cover the wider market.

Savings and shares: how your account works

Your savings at a credit union are your shares. Salford Credit Union explains the idea plainly: to become a member you open a savings account, called a share account, because each member owns a share of the credit union¹⁰. Newarthill Credit Union's handbook gives the payment details for paying money in: sort code 60-83-01, account number 20190000, payee Newarthill Credit Union Limited, with your member number and surname as the reference².

Savings earn a dividend rather than interest. Profit shares are distributed among credit union members annually and are known as a dividend¹¹. Newington Credit Union says its savings earn dividends paid annually¹², and Cranhill Credit Union notes that savings may earn an annual dividend, which is not guaranteed¹³. At Newarthill Credit Union the financial year runs from 1 October to 30 September, and the dividend is calculated for that period².

How you pay in varies by credit union:

• Cranhill Credit Union accepts standing orders, card payments by telephone, or payments at the office¹³.
• Oldham Credit Union lets members save weekly or monthly, whichever suits, and describes instant access to savings¹⁴.
• Newtownards Credit Union asks members to print and complete a membership application form and bring it in with proof of address and photographic identification¹⁵.
• Some credit unions run a separate bills account alongside savings, where income is paid into the savings account, money is set aside to pay agreed bills, and the rest is left as spending money¹⁶.

The minimum balance to keep a Newarthill Credit Union account active is £5⁵. Senior accounts can be closed at any time without a fee, as long as there is no outstanding loan balance².

Newarthill Credit Union loans: fixed repayments over a fixed term

Newarthill Credit Union lends from £50 up to £15,000, over terms from one month to 60 months, with fixed loan repayments, fixed terms and fixed interest rates¹. Interest is charged daily on the reducing unpaid balance, so the interest you pay tracks what is actually outstanding rather than the original sum¹.

That structure is common across the movement. Greenwich & Bexley Credit Union offers fixed repayments over periods up to five years¹⁷. Newington Credit Union lets members repay weekly, fortnightly, four-weekly or monthly¹⁸. Moray Firth Credit Union accepts weekly, fortnightly, monthly or four-weekly repayments over up to four years¹⁹. Darlington Credit Union offers weekly, fortnightly or monthly repayments on both its guarantor loan and its personal loan²⁰. Mournederg Credit Union considers loans over £5,000 over four years²².

A fixed sum loan of this kind is a personal loan for an agreed amount of time, often for big items, and typically runs over 12 months or 12 instalments or longer with interest added²³. Because the repayment is fixed, the amount leaving your account each month does not move, which makes it easier to budget around²⁴.

That ceiling is a feature of the Northern Ireland framework rather than a rate any individual credit union charges, and it is worth checking the current position with the credit union itself.

Joining fee, administration fee and other charges

Newarthill Credit Union charges a £5.00 administration fee on an annual basis if there are no deposits or withdrawals on your account within its financial year². There is also a £5.00 service fee on the senior account². On lending, the credit union states that it believes in transparent lending with no hidden fees¹.

Other credit unions structure charges differently, which is useful context when comparing. Magherafelt Credit Union states that it has no administration charges or arrangement fees, no hidden extras or nasty surprises²⁵. The pattern across the movement is that charges are small and few, but they are not uniform, so the fee that applies to you depends on the credit union and the account.

The practical point is the dormancy fee. If you open an account, save a small amount and then leave it untouched for a full financial year, the £5.00 administration fee applies². The financial year runs from 1 October to 30 September, so a single deposit or withdrawal within that window avoids it².

Who can join and who can borrow

Credit unions serve a defined membership, usually based on where you live or work. Magherafelt Credit Union, for example, accepts new members of all ages who are living or working in the Greater Magherafelt Area²⁵. Newarthill Credit Union's common bond is set out in its membership handbook, and the practical step is to visit or call to confirm what information you need to join². Most credit unions ask for photographic identification and proof of address when you apply²⁵.

To borrow, you must be a member. Newington Credit Union notes that only members are eligible to receive loans¹⁸. Newarthill Credit Union states that if you are a member and over 18 you may apply for a loan².

That is a rule about the credit union's own book rather than something a personal borrower needs to act on, but it explains why some credit unions lend to businesses only in a limited way.

If you are not sure which credit union covers your area, the Association of British Credit Unions can help you find your local one, by website or on 0800 015 3060²⁰.

Death benefit cover on shares and loans

Newarthill Credit Union states that on the death of any member it makes an application to the Newarthill Death Benefit Fund, and in most cases the loan will be paid off in full in the event of your death, at no cost¹. The awards are reviewed annually by the board, and any concerns are brought to members at the AGM².

There are two exclusions to be aware of, and the handbook states them separately. Shares are not covered for the first 12 months of membership². The handbook also notes that shares are not covered if a member joins or rejoins over the age of 65². The two statements sit alongside each other in the document and are not reconciled there, so if either could apply to you, it is worth asking the credit union directly which one governs your position.

Other credit unions describe similar benefits in their own terms. Ballycastle Credit Union offers life savings insurance for eligible members at no cost²³. Moray Firth Credit Union describes free loan protection insurance to pay off your loan in the event of your death up to age 80, with conditions possibly applying¹⁹. New Easterhouse Credit Union says a loan would be cleared subject to terms and conditions⁹.

Nominating who receives your savings

A nomination tells the credit union who should receive your savings when you die. Newarthill Credit Union's handbook states that after the member's death, as the nominee, you are entitled to the first £5,000 in the credit union account in accordance with the Co-operative and Community Benefit Societies Act².

The handbook also sets out what is needed to release funds, and the requirement changes with the amount:

Grant of Confirmation is the Scottish procedure, which follows from the credit union being registered in Scotland².

The claim window for the death benefit is separate from the window for the savings. All death benefit awards must be claimed within one year of a member's death, but the share balance will still be available for 15 years².

Nomination is not the same as giving someone access to your account while you are alive. Most banks, building societies and other account providers allow a third party access to your account, for example with a second card, but that is a different arrangement from a death nomination²⁶. If you are sorting out the money side of a death, the life events guide covers what has to be done and in what order, and the benefits section covers the support that may be available.

Using online banking safely

Newarthill Credit Union publishes online security guidance for members, and the rules are specific:

• Never share your passwords or login information with anyone who is not on your account⁶.
• When selecting security questions, make sure the answers are not publicly available on sites such as Facebook⁶.
• Create complex passwords using letters, numbers, symbols, and upper and lower case⁶.
• Install the latest antivirus software on your computer⁶.
• For mobile banking platforms using the Android operating system, do not enable Android's "install from known sources" feature⁶.

The credit union also sets a rule for text alerts: if you receive a text from any other email address, do not respond to the text and contact the credit union immediately⁶. Its published contact details are enquiries@newarthillcu.co.uk by email and Newart-CU by text⁵.

That rule matters because scam messages imitate financial firms. Take Five, the national fraud awareness campaign, advises being wary of unexpected or suspicious looking pop-ups that appear during your online banking session²⁷, and advises using strong and unique passwords to protect your online accounts²⁸. If you think someone else has accessed an online account, the standard response is to change your password straight away and contact the provider²⁹. Age UK's guidance on online banking covers the registration process in general terms: you register on the bank's website, answer identity verification questions, enter an activation code sent by post or text, and set up a username and a secure password or passcode³⁰. The scams and fraud guide covers the wider picture.

How your money is protected

Newarthill Credit Union states that it is covered by the Financial Services Compensation Scheme². Its handbook sets out the limits: in respect of deposits, an eligible depositor is entitled to claim up to £120,000, and for a joint account held by two eligible depositors the maximum that could be claimed would be £120,000 each, making a total of £240,000². Credit unions in Northern Ireland are covered by the FSCS as well²⁴.

The FSCS limit is a per-person, per-institution figure, so money held in more than one account with the same credit union counts together towards it. The scheme does not cover everything: credit insurance claims are not eligible for FSCS protection³¹. The consumer protection guide explains how the scheme and the ombudsman fit together.

If something goes wrong with the service rather than the firm's solvency, the Financial Ombudsman Service is the route for complaints that the credit union has not resolved. The regulation and policy section covers who makes the rules and how they reach consumers.

Contacting Newarthill Credit Union and complaining

The credit union's registered office is 111-113 High Street, Newarthill, Motherwell, ML1 5JH². Its published contact details are enquiries@newarthillcu.co.uk by email and Newart-CU by text⁵. Its website is newarthillcu.co.uk³.

If you have a complaint, raise it with the credit union first. If it is not resolved to your satisfaction, the Financial Ombudsman Service can look at complaints about firms it covers, and the consumer protection guide explains how that works and what it can and cannot do. For money problems that are not a complaint about the credit union itself, free and impartial help is available from MoneyHelper and from debt advice charities, and the debt guide sets out the options.