Stevenage Credit Union

Stevenage Credit Union is a not for profit community lender that offers savings accounts and loans to its members. Loans start at £100, with no application fees and no early repayment charge, and members can save as much or as little as they like, weekly, monthly or as often as they wish¹. Membership is open to anyone over 18, and the type of loan available depends on how long you have been a member and the level of savings you hold¹.

It offers four types of savings account: a main saver account, a Christmas account, a junior account and a holiday or special occasion account². Loans range from £100 to £7,000, with no application fees and no early repayment charges³. You have to be a member to borrow, and membership is open to people who share the credit union's common bond⁴.

What Stevenage Credit Union offers

Stevenage Credit Union provides savings accounts and loans to its members². All credit unions offer savings and loans, and larger ones may add services such as Christmas savings accounts, ISAs, budgeting accounts, current accounts and debt management⁶. Stevenage Credit Union's own range is focused on savings and loans.

The credit union is a not for profit community lender, which means it exists to serve its members rather than to make a profit for shareholders⁷. Any surplus it makes can be returned to members through an annual dividend on savings, or used to keep loan rates affordable².

Its savings accounts are designed around different purposes: everyday saving, saving for Christmas, saving for a holiday or special occasion, and saving for a child². Its loans are designed for members who need to borrow, with the amount and terms depending on your circumstances³.

If you are new to credit unions, the credit unions guide explains how they differ from banks and building societies, and what to expect.

Savings accounts: main saver, Christmas, junior and holiday

Stevenage Credit Union offers four types of savings account²:

Credit unions commonly offer dedicated Christmas and holiday savings accounts alongside a main share account⁸. Some credit unions let you hold several share accounts and a Christmas account within your membership⁹. The idea is that money saved for a particular purpose stays separate from money you might otherwise spend.

You can save as much or as little as you like, either weekly, monthly or as often as you wish². There is no minimum monthly saving stated by Stevenage Credit Union, though its savings table shows example monthly amounts of £15, £30, £40 and £50².

For a wider look at how savings accounts work, including interest and access, see the savings guide.

How the annual dividend works

Credit unions normally pay a dividend to members once a year, depending on how much you have saved and how much profit the credit union has made¹⁰. Stevenage Credit Union pays an annual dividend to its members when possible².

The dividend is not interest in the usual sense. It is a share of the credit union's surplus, and it is not guaranteed. It depends on the credit union's financial performance that year and on a decision taken by the members at the annual general meeting¹¹. Some credit unions describe it as an annual dividend (interest) paid from profit at the end of each year, dependent on profitability and approval through the AGM¹¹.

Because the dividend is not guaranteed, it is not a fixed return, and the amount received depends on your savings balance and on the credit union's results¹⁰. Credit unions may also choose to pay a loan interest rebate, which is a refund of loan interest paid to all members who borrowed during the preceding financial year¹².

If you are comparing savings options, the savings guide explains how interest-bearing accounts and dividend-paying accounts differ.

Loans for members

Stevenage Credit Union offers loans from £100 to £7,000³. Its standard loan allows you to borrow between £100 and £5,000, depending on your status⁴. All loans are subject to affordability checks, and all applications are reviewed by the loans committee to consider your individual circumstances before a final decision is made⁴.

The type of loan you can apply for depends on your membership length, the level of savings you have, your credit history and your ability to repay the loan³. You must have some savings to qualify for a standard loan⁴. You have to be a member of Stevenage Credit Union to apply for a loan⁴.

Credit unions generally offer loan products suited to members' individual needs and at rates they can afford¹³. Some credit unions offer loans for specific purposes such as car purchase, home improvements or holidays¹⁴. Only members are eligible to receive loans from a credit union¹⁵.

If you are considering borrowing, the loans guide explains how loan interest, terms and affordability checks work across different types of lender.

How loan interest and repayments work

Stevenage Credit Union charges interest on the reducing balance of your loan³. That means interest is calculated on what you still owe, so as you repay, the interest charged each period falls. Repayments are calculated on your reducing balance, so you pay less interest with each repayment¹⁶.

Credit unions set their own loan rates, and the rate that applies to you depends on the amount, the term and your circumstances. Stevenage Credit Union does not publish its loan rate on the pages reviewed here, so the current rate for your application is something to ask it for directly.

As an illustration of how repayments work, Stevenage Credit Union states that a standard loan of £1,000 can cost as little as £14.65 monthly³. That figure is an example, not a quote, and the actual repayment depends on the rate, the term and your circumstances.

Once you apply, it should take 7 to 10 days to reach a decision, provided all relevant documents are submitted and the loan application is filled in correctly⁴. Loans can only be paid off in full six months after the issue of the loan, as part of the terms and conditions³. There are no early repayment charges³.

Who can join and borrow

Anyone can become a member of a credit union, but you must share a common bond with other members⁸. A common bond determines who can join: living or working in the same area, working for the same employer, or belonging to the same association such as a trade union or church⁶. Anyone in the house of a person with a common bond with a credit union can usually join¹⁰.

Stevenage Credit Union's common bond covers people who live or work in its area. You have to be a member to apply for a loan⁴. If you are over 18, the type of loan you can apply for depends on your membership length, the level of savings you have, your credit history and your ability to repay the loan³.

You must have some savings to qualify for a standard loan⁴. Some credit unions ask new members to build up savings before they can borrow¹⁷. If you are new to credit unions and want to borrow, it is worth asking what savings requirement applies to you.

Junior accounts are available for children under 16, opened by a parent or guardian¹. A birth certificate is required as proof of identity for the child¹.

How to join Stevenage Credit Union

To join Stevenage Credit Union, you click on Join Us at the top of its website and follow the instructions¹. You will need a valid driving licence or passport¹. A birth certificate is required for a junior account¹.

Credit unions generally ask you to visit or call to confirm what information you need to join⁸. Some credit unions ask you to fill in a membership application form and make an appointment to complete your application with a member of staff, bringing photo ID, proof of address and your National Insurance number¹⁸. Others let you apply online or join in branch with two forms of identification¹⁹.

Stevenage Credit Union states there are no application fees³. The amount varies between credit unions, so it is worth checking the current position with Stevenage Credit Union directly.

If you are not sure whether you are eligible, the credit unions guide explains common bonds and how to find the credit union for your area.

Paying in and taking money out

You can pay into your Stevenage Credit Union account by standing order, by coming into the branch, or by making payments with your online bank account². Credit unions commonly accept payments by payroll deduction from wages, direct debit or standing order, cash at the credit union office or a collection point, and state benefits paid in directly⁶. Some also use PayPoint cards⁶.

To take money out, Stevenage Credit Union offers a bank transfer, or you can visit its office at 11 The Hyde to ask for a cash withdrawal².

Credit unions generally let you take money out by cashing a cheque at a local Post Office, taking cash from the local credit union office, having a payment made directly into a bank account, or using a debit card at a cash machine if the credit union operates a current account⁶. Members can also pay in through retail payment networks such as PayPoint and PayZone, by standing order or direct debit, or in cash at local offices and collection points⁸.

For everyday money tasks such as setting up a standing order, see the how-to guide.

How your savings are protected

Your deposits with Stevenage Credit Union are protected by the Financial Services Compensation Scheme (FSCS)¹. The FSCS protects your savings up to £120,000 per eligible person, per bank, building society or credit union⁵. Loans and savings with credit unions are protected by the Financial Services Compensation Scheme⁷.

If you hold more than that across your accounts, the excess is not covered²⁰.

If you have a complaint about Stevenage Credit Union that it cannot resolve, you can take it to the Financial Ombudsman Service. The ombudsman is free to use and covers firms regulated by the FCA.

If you are struggling with debt, free and impartial help is available. StepChange Debt Charity offers free and impartial help with debt problems²¹. Coming to StepChange for debt advice does not impact your credit file or involve any credit checks²². You can also check your credit report with the three main credit agencies, TransUnion, Experian and Equifax, to make sure your credit information is accurate²³.