Smart Money Cymru Community Bank

Smart Money Cymru Community Bank is a credit union, not a bank. It is a not-for-profit community lender that provides affordable loans and savings accounts to its members, and it serves people in the Caerphilly, Blaenau Gwent and Powys areas of Wales, and also Newport¹. A new member can borrow up to £1,000 on a first loan, rising to £7,500 once that loan has been repaid in full, and surpluses are returned to members through dividends and lower loan costs⁴.

Credit unions are customer-owned financial institutions based across the UK in local communities⁵. They are run by members to benefit communities rather than to make a profit⁶. Smart Money Cymru has served its members since 2 July 2002 and trades under the names Smart Money Cymru Community Bank and Smart Goods¹.

If you live in Wales but outside the areas Smart Money Cymru covers, the Credit Union of Wales serves all other areas². If you are unsure which credit union covers your address, you can check with either one directly.

What Smart Money Cymru Community Bank offers its members

Smart Money Cymru Community Bank provides the core services of a credit union: loans and savings accounts for people who live or work in its area². Credit unions are not-for-profit community lenders, providing affordable loans and savings². They exist to serve their members rather than to generate profit for outside shareholders⁶.

As a member, you can usually 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 access budgeting advice and support, all for free⁶. These services are typical of credit unions across the UK, though the exact range available at Smart Money Cymru may vary.

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. If you need one of those products, you would need to look at a bank or building society. For the products a credit union does offer, the credit unions guide explains how they work across the UK.

Smart Money Cymru also operates Smart Goods, a second name it trades under¹. Its lending is personal loans and similar products rather than payday-style credit: it does not offer high-cost short-term credit, bill of sale agreements or home collected credit, and it accepts deposits from members¹.

Loans: Smart Family, Personal, Consolidation, Credit Builder and more

Smart Money Cymru offers several types of loan to its members. The range covers the Smart Family Loan, Personal Smart Loan, Consolidation Loan, Payroll Loan, Credit Builder Loan, Christmas Loan, Council Tax Debt Relief Scheme and New Member Loan⁶. Its lending is personal loans and similar products rather than payday-style credit: it does not offer high-cost short-term credit, bill of sale agreements or home collected credit¹.

Credit unions in Wales have a long history of providing affordable credit to people who might struggle to borrow from mainstream banks. A Welsh Government study of credit unions recorded 4,183 loans to new members under the Financial Inclusion Growth Fund in June 2009¹⁰. That figure is dated, but it shows the scale of credit union lending in Wales at that time.

If you are considering a consolidation loan to combine existing debts, the options include making new arrangements with your existing lenders, making best use of existing credit options such as an overdraft, credit or store cards, a personal loan or mortgage extension, or borrowing from relatives¹¹. Building societies and banks may be able to offer you a personal loan¹¹. A credit union consolidation loan is another route, and the loans guide sets out how personal loans work more broadly.

How repayments work and saving while you repay

When you take out a loan, your repayments are worked out at the time your loan is agreed¹³. They are based on what you can afford, and you must agree how you will repay before you get the payment¹³. This approach is standard for credit union lending, where affordability is assessed individually rather than by an automated scoring system alone.

Credit unions encourage members to save while they repay. You will normally receive a dividend on your savings, and this is usually paid annually⁷. The dividend is not guaranteed and depends on the credit union's performance that year. It is not interest in the conventional sense, because a credit union is not a bank and does not operate for profit⁶.

If you want to repay a loan early, you have the possibility and the right to repay it early, either fully or partially, under the standard European Standardised Information Sheet used for consumer credit¹⁴. Whether any charge applies depends on your individual agreement. For some types of borrowing, such as Green Deal loans, you can pay the loan off early but there may be extra costs¹⁵. Check your loan documentation before making an early repayment.

Payroll Loans through a local employer

Credit unions in Wales work with employers across Wales to offer payroll savings schemes to support the financial wellbeing of staff¹⁶. Through a payroll scheme, repayments or savings contributions are deducted directly from your wages and paid to the credit union. This can make it easier to keep up with repayments because the money never reaches your current account.

If you are in a financial crisis and need emergency help, you can apply for crisis loans through credit unions and charities, and your local council may be able to help too¹⁷. Shelter Cymru can help you find out if you can access funds, loans, food banks and household items if you are in a financial crisis¹⁸.

Payroll schemes are not available to everyone, because they depend on your employer participating. If your employer does not offer one, you can still make payments to the credit union directly by standing order or through online banking.

Savings and the annual dividend

Savings are at the heart of credit union membership. You will normally receive a dividend on your savings, and this is usually paid annually⁷. The dividend is declared by the credit union after the end of its financial year and depends on how the credit union has performed. It is not a fixed rate of interest and can vary from year to year.

Credit unions are not-for-profit, run by members to benefit communities rather than to make a profit⁶. This means any surplus is returned to members through the dividend or retained to strengthen the credit union, rather than paid to external shareholders.

For free, you can usually 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 access budgeting advice and support⁶. These services make it straightforward to manage your savings alongside any loan repayments.

The savings guide explains how savings accounts work more generally, including the difference between interest and dividends. If you are comparing savings options, it is worth understanding that a credit union dividend is not guaranteed in the way a bank's interest rate is.

Charges and fees for members

Credit unions are not-for-profit organisations, which means they do not aim to make a profit from their members⁶. Charges, where they apply, are set to cover the cost of providing the service rather than to generate a surplus. The exact fees depend on the individual credit union and the product.

Smart Money Cymru Community Bank does not publish its charges in the sources available for this page. To find out what a particular loan or account costs, you would need to check the credit union's own website at www.smartmoneycymru.co.uk or contact it directly¹.

For comparison, some financial products carry monthly fees. Smart Pension, for example, charges a monthly fee of £1.75, waived if the account is worth £100 or less¹⁹. That is a pension product, not a credit union account, but it illustrates how flat monthly fees work in practice. Credit union charges are typically lower and linked to the specific service used.

Who can join and who can borrow

To join Smart Money Cymru Community Bank, you normally need to live or work in its area. The credit union serves the Caerphilly, Blaenau Gwent and Powys areas, and also Newport¹. For all other areas in Wales, the Credit Union of Wales is the alternative².

You will usually need identification to prove your identity, such as a driving licence, passport, recent bills or official documents²⁰. This is a standard requirement for opening any financial account in the UK, and credit unions verify identity in the same way as banks. Smart Money Cymru does not lend to members in formal debt remedies such as a DRO, an IVA or bankruptcy⁴.

To borrow from a credit union, you generally need to be a member first. Credit unions assess affordability individually, and the amount you can borrow depends on your circumstances. 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 need one of those products you would need to look elsewhere.

How to join, apply for a loan and pay in

Joining a credit union typically involves completing a membership application and providing identification. You will usually need ID to prove your identity, like a driving licence, passport, recent bills or official documents²⁰. Once your membership is approved, you can open a savings account and, if you wish, apply for a loan. New members can use a simple online application form to apply for their first loan²¹.

1. Check that you live or work in the area the credit union covers¹.
2. Complete a membership application and provide identification²⁰.
3. Open a savings account once your membership is approved⁶.
4. Apply for a loan if you need one, giving details of your income and outgoings¹³.
5. Agree the repayment method before the money is paid out¹³.

To apply for a loan, you would normally complete an application form and provide information about your income and outgoings. The credit union will assess whether the loan is affordable for you. Your repayments are worked out at the time your loan is agreed, based on what you can afford, and you must agree how you will repay before you get the payment¹³.

You can pay money in by paying in cash at the credit union, having money paid in such as wages, benefits and pensions, or using online, mobile or telephone banking⁶. If your employer operates a payroll scheme with the credit union, you may be able to have savings or loan repayments deducted directly from your wages¹⁶.

The how-to guide covers everyday money tasks step by step, including how to open an account and set up payments. The current accounts guide explains how bank accounts work if you need a full current account alongside your credit union membership.

If you fall behind on repayments

If you are struggling to keep up with loan repayments, contact the credit union as soon as possible. Missed or late payments can create more problems, so you need to be really sure you will be able to keep up with the repayments¹². Credit unions are member-owned and may be able to agree a revised repayment plan, but this depends on your circumstances and the credit union's policies.

Free, independent debt advice is available across Wales. Shelter Cymru can provide you with free, independent, confidential, specialist debt advice²¹. The Welsh Government also provides information on getting financial or debt advice²². Citizens Advice Cymru offers advice on money and benefits²².

If you are in a financial crisis, you can find out if you can access funds, loans, food banks and household items¹⁸. Crisis loans are available through credit unions and charities, and your local council may be able to help too¹⁷.

Complaints and FSCS protection

If you have a complaint about Smart Money Cymru Community Bank, the first step is to raise it with the credit union. If you are not happy with the outcome, the complaint can be referred to the Financial Ombudsman Service²³. The ombudsman considers complaints from consumers about financial firms, and it can look at complaints from microenterprises and SMEs as well as consumers²⁴.

The Financial Ombudsman Service can usually look at complaints about firms that provide their services from England, Scotland or Wales, or to consumers in those nations²³. You normally need to give the firm a chance to resolve the complaint before the ombudsman will take it on.

Money held with Smart Money Cymru Community Bank is protected by the Financial Services Compensation Scheme. This scheme is set up to protect you if your bank, building society or credit union runs into financial difficulty⁸. The FSCS covers deposits up to a set limit, and the same limit applies to credit unions as to banks.

The consumer protection guide explains how FSCS protection works and what it covers. The credit unions guide covers the wider credit union sector in the UK, including how to find a credit union in your area and what to expect from membership.