R.M.T. Credit Union

R.M.T. Credit Union is a not-for-profit credit union for members of the RMT trade union, offering savings accounts, Christmas and summer savings clubs and loans. It is not a bank. A credit union is a cooperative financial institution, and it cannot offer overdrafts, mortgages, electronic banking services and payment methods or business loans in the same way as a bank¹.

R.M.T. Credit Union is a credit union: a member-owned financial co-operative that takes savings from its members and lends to them³. Its savings accounts are protected by the Financial Services Compensation Scheme up to £120,000 in total across all accounts you hold with the credit union⁵. It appears on the Bank of England's list of credit unions incorporated in the UK⁶.

Membership is built on a common bond: being a member of the National Union of Rail, Maritime and Transport Workers Trade Union or its successors⁴. A spouse can join as a non-member with their own account as long as both live at the same address⁴. The credit union is managed by a voluntary Board of Directors, elected by members at the AGM⁴.

What R.M.T. Credit Union is and what it offers

A credit union provides loans, savings, bank accounts and other services to their members⁷. R.M.T. Credit Union follows that model: it is a not-for-profit financial provider that helps people access banking products, run by members to benefit communities rather than to make a profit⁷. It is owned by its members, who elect the board.

What it offers is narrower than a high street bank's range. 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 bank². That is a structural limit of the model, not a reflection on this particular firm. Where a credit union does offer a current account, the free features usually include paying in or taking out cash at the credit union, having money paid in such as wages, benefits and pensions, online, mobile or telephone banking, and budgeting advice and support⁷.

The credit union's own website carries its current product terms, and its frequently asked questions page is the starting point for what is on offer today⁴. Because credit unions set their own terms, the detail of what a member can open, save and borrow differs from firm to firm, and services vary by branch⁸.

If you are weighing up a credit union against other providers, the wider guide to credit unions explains how the model works across the UK, and the current accounts and savings guides cover the alternatives in more depth.

Saving with R.M.T. Credit Union

Saving is the foundation of the relationship. All credit unions offer savings and loans, and members' savings are used to fund loans to other credit-worthy members⁹. That is how the model funds itself: your deposits are lent to other members, and the interest they pay supports the union.

R.M.T. Credit Union runs two named savings clubs alongside ordinary saving. The Christmas savings club pays out in November and the summer savings club pays out in July⁴. The idea is to relieve some of the stress by saving over the course of the year with the RMT Christmas or Summer clubs¹¹. Withdrawals are paid direct to your bank account by BACS⁴.

Money can be paid in by deduction. The credit union can collect weekly (Fridays), monthly or four-weekly deductions if the member informs them of their pay-day, and money will be deducted from your bank account on the 2nd, 15th or 28th of each month¹².

One practical point for anyone on means-tested benefits: Credit Union accounts are listed among the common types of savings and other capital that count towards the Universal Credit capital rules¹³. Savings held here are not invisible to a benefits assessment.

Borrowing from a credit union: how loans work

Credit unions offer loan products suited to your individual needs and at rates you can easily afford¹⁴. Borrowing is usually at a low interest rate and the repayments can have some flexibility¹⁵. They are also positioned as alternative borrowing options to payday loans¹.

The amount you can borrow is often tied to what you have saved. Credit unions are saving schemes run by their members which also allow you to borrow two or three times as much as you have saved at a low interest rate¹⁴. Lending practice varies: some will lend to you as soon as you become a member, while others only lend after you have saved for a set period, and affordability is checked against the money you have left after paying bills¹⁰. 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 saver¹⁶.

At R.M.T. Credit Union, all loan applications are considered by the Loans Officer, who can refer the application to the full Board if unable to make a firm decision⁴. You must be a member of a credit union to get a loan from them, and some will ask you to build up savings first¹.

The wider guide to loans sets out how borrowing works across lenders, and the debt guide covers what to do if repayments become difficult. Free, impartial help is available from MoneyHelper and from debt advice charities.

Who can join R.M.T. Credit Union

You must be an RMT member to join the RMT Credit Union¹². The common bond is being a member of the National Union of Rail, Maritime and Transport Workers Trade Union or its successors⁴. Membership of a credit union is based on a common bond, and anyone can become a member provided they share that bond with other members⁹.

There is a route in for partners. Your spouse can join the credit union as a non-member and have their own account as long as you both live at the same address⁴. More broadly, anyone in the house of a person with a common bond with a credit union can usually join, and other family members living at the same address can usually join if one family member meets the common bond and has joined¹.

Accounts can only be opened once verification of identity and address has been satisfactorily completed and cross-referenced against RMT membership¹². You do not have to provide proof of identity or address if you agree to the credit union checking this electronically via credit reference agencies, including the electoral register, by ticking the relevant box on the application form¹². If you would rather supply documents, the credit union publishes a list of approved certifiers who can sign them:

• Delegated Officer of the Branch, Divisional Organiser or Executive Committee Member
• Credit Union Officer
• Post Master or Sub Post Master
• Full Time Trade Union Official
• Councillor or Member of Parliament
• Minister of Religion, Lawyer, Banker, Teacher, Doctor, Accountant, Police Officer or Dentist¹²

Eligibility across the credit union sector has been widening. The sector's own press coverage notes that eligibility will also widen to include students, local workers and relatives of existing members, reflecting the way people live and work¹⁸. That is a sector-level change, not a statement about this firm's own rule, which remains the RMT membership bond.

How to join and manage your account

Joining is a paper process. To join, print out and fill in the Credit Union Application Form and return it, together with proof of your identity and address, to P.O. BOX 252, Wisbech, PE14 4FX¹². If you have agreed to electronic verification, you can skip the documents and tick the relevant box instead¹².

Once you are a member, money moves by deduction from your bank account. The credit union can collect weekly on Fridays, monthly or four-weekly if you tell them your pay-day, and deductions fall on the 2nd, 15th or 28th of each month¹². Withdrawals are paid direct to your bank account by BACS⁴.

If you are choosing between credit unions rather than already set on this one, you need to visit or call your chosen credit union to confirm what information you need to join, since requirements differ⁹. Most local areas have a credit union, and a finder website can help you locate one¹.

From RMT Community Bank to R.M.T. Credit Union: what the name change means

The FCA register lists RMT Community Bank as a previous name for the credit union³. The register shows its status as Authorised, with a status effective date of 29/04/2004, and its permission is to accept deposits³.

For a member, a name change of this kind is administrative. The firm, its reference number and the way accounts are held are unchanged, so existing accounts continue as before and there is nothing to reapply for. The name a reader sees on statements and correspondence is the one to search for on the register.

The distinction worth holding on to is between the credit union and the union. The RMT trade union and RMT credit union are separate legal entities with different complaints processes¹⁹. A dispute about union membership is not a dispute about a savings account, and the two are handled separately.

Checking R.M.T. Credit Union on the FCA register

You can check whether a provider or adviser is authorised by the PRA or FCA on the FCA register²⁰. Search the FCA register using your provider's firm reference number for the most accurate results²⁰. For this credit union, that number is 228612³.

The register entry confirms the credit union's status as Authorised, its permission to accept deposits, its previous name of RMT Community Bank and its website address³. It also appears on the Bank of England's list of credit unions incorporated in the UK⁶. Credit unions are regulated by the Financial Conduct Authority, and they must submit quarterly accounts to the FCA and PRA, as well as annual audited accounts⁴.

The scams and fraud guide covers the warning signs, and the regulation and policy guide explains who makes the rules.

FSCS protection for your savings

Loans and savings with credit unions are protected by the Financial Services Compensation Scheme²². The scheme protects up to £120,000 in total across all accounts you hold with the credit union, for individual account holders⁵. All shares, meaning savings, in an affiliated credit union are eligible for protection under the Financial Services Compensation Scheme¹⁰.

Two limits are worth knowing. The £120,000 figure is a total across your accounts with that credit union, not a per-account figure, so spreading money across several accounts with the same firm does not increase the cover. And the scheme does not cover everything a financial firm sells: credit insurance is not eligible for FSCS protection, for example²³. FSCS protects mortgage advice, which is a separate category from deposits²⁴.

If you want to confirm a firm is covered, check the Financial Services Register on the FCA's website at register.fca.org.uk to see if the firm mentioned is authorised²⁵. The consumer protection guide sets out how the compensation scheme and the ombudsman fit together, and the savings guide covers how the limit applies across accounts.

Complaints and where to get help

Start with the credit union itself. It will provide you with a copy of its internal complaints procedure on request¹⁹. Any credit union member or potential or former member can use that route¹⁹. Before you take your complaint to the Ombudsman, you must first have tried to resolve it through the internal complaints procedure of RMT Credit Union¹⁹.

If the internal process does not resolve matters, the Financial Ombudsman Service is the next step for complaints about financial firms. The ombudsman route is well established across consumer credit: you can complain to the Financial Ombudsman Service about something a credit-repair company has done, for example, and complaints about a credit file that a credit reference agency has not resolved fairly can be escalated there too²⁶.

Keep the two organisations separate in your own mind. The RMT trade union and RMT credit union are separate legal entities with different complaints processes¹⁹.

Free, impartial help is available if money problems are part of what you are dealing with. MoneyHelper provides guidance on credit unions and everyday banking⁷. Debt advice charities including StepChange and National Debtline offer free help, and the debt guide sets out the options, including debt management plans and other solutions²⁸. If you are struggling with repayments, the loans guide explains what happens when borrowing goes wrong.