Termonmaguirk Credit Union

Termonmaguirk Credit Union is a community based, not-for-profit financial provider offering loans and savings to people who live or work in its local area¹. It is a credit union, which means it is owned by its members rather than by shareholders, and members who save have the right to vote on a one member, one vote basis and can take part in decisions affecting the credit union¹.

Its common bond, the rule that decides who can join, is "residence or employment in the parish of Termonmaguirc or within a radius of 5 miles of Loughmacrory, Omagh, Co Tyrone"². If you fall inside that area, you can apply to become a member. Membership brings savings, access to loans, free insurance benefits for eligible members, and a share of any dividend the annual general meeting approves¹.

What it offers at a glance

Savings, loans and the annual dividend

Savings at Termonmaguirk Credit Union are held as shares, the term credit unions use for a member's savings⁵. The credit union states that there are no hidden charges or fees on any transactions, and that savings are protected by the Financial Services Compensation Scheme¹. Members who save also have the right to vote and to participate in decisions affecting the credit union¹.

On the savings side, the credit union pays a return of dividend at the end of the financial year, subject to approval at the annual general meeting¹. That is how credit union savings work generally: a dividend is normally paid once a year, and the amount depends on how much you have saved and how much surplus the credit union has made⁶. It is not a fixed rate and it is not guaranteed. Some credit unions describe the dividend as attractive, but the rate varies and depends on the surplus after expenses⁸.

On the loans side, the credit union offers loans and states that there are no administration charges, hidden fees or penalties for early repayment⁴. Loans between £15,000 and £30,000 may require additional credit checks⁴. The Large Loan and Secured Loan products can carry a lower interest rate when a rebate is applied up front, with the percentage proposed at the annual general meeting and paid into members' savings accounts the next day if agreed⁴. The provider's site has the current rebate figure.

Members' savings are used to fund loans to other credit-worthy members, which is how credit unions generally work⁹. You must be a member to get a loan from a credit union⁶. For the wider picture on borrowing, see Loans: a complete guide, and for savings generally, Savings accounts: a complete guide.

School saving scheme for local children

Termonmaguirk Credit Union runs a school saving scheme for all the children, operated with the co-operation of the principals and teachers of the local schools¹. The scheme is designed to get children into the habit of saving from an early age, and it is run through the schools themselves rather than requiring a separate trip to the office.

School savings schemes of this kind are common among credit unions. Celtic Credit Union, for example, describes its school savings schemes as designed to get primary and secondary school children into the habit of saving, and says it administers the scheme, delivers training to pupils and teachers, and raises awareness¹⁰. The pattern is the same at Termonmaguirk: the credit union works with the schools, and children save small amounts regularly through the scheme.

For a child's account, the credit union asks for the child's long birth certificate or a current valid passport, plus address verification for the parent or guardian². Junior savings accounts at credit unions are typically open to children from birth up to age 18, though the exact age range is set by each credit union¹¹. If you want to know whether your child's school is part of the Termonmaguirk scheme, the office is the place to ask.

Free insurance cover for eligible members

Termonmaguirk Credit Union provides three insurance benefits to eligible members at no direct cost: Free Loan Protection Insurance, Free Life Savings Insurance and Free Death Benefit Insurance². These are membership benefits rather than products you buy, and they are subject to terms, conditions and eligibility criteria⁴.

• Loan Protection Insurance: provided at no direct cost to members when they borrow, and it repays loans in the event of death⁴.
• Life Savings Insurance: covers members' savings at no direct cost to the member¹².
• Death Benefit Insurance: a service the credit union provides to members, again at no direct cost¹².

These benefits are common across credit unions, though the details differ. Omagh Credit Union, for example, lists Free Loan Protection Insurance, Free Life Savings Insurance and Free Death Benefit Insurance as membership benefits¹¹. Croydon Caribbean Credit Union describes Loan Protection, Life Savings and Death Benefit insurance at no direct cost to eligible members¹³. Falkirk District Credit Union offers free life insurance to all members aged 16 to 79¹⁴. The eligibility rules at Termonmaguirk are set by the credit union, so it is worth asking the office which benefits apply to you and on what terms.

Fees and charges: no hidden transaction fees

Termonmaguirk Credit Union states that there are no administration charges, hidden fees or penalties for early repayment on its loans⁴, and no hidden charges or fees on any transactions on its savings¹. That is a common position among credit unions: Dromore (Tyrone) Credit Union, Pomeroy Credit Union, Dromara & Drumgooland Credit Union, Merthyr Tydfil Borough Credit Union, Mid Tyrone Credit Union, LTD Credit Union and Armagh Credit Union all state that they have no hidden charges or fees on transactions¹⁵.

What that means in practice is that the cost of borrowing is carried in the interest rate rather than in arrangement fees, early repayment penalties or transaction charges. The credit union does not publish its loan rates on the pages covered here, so the rate that applies to you depends on the loan type and amount, and the office can confirm today's figures. For how credit union borrowing compares with other options, see Credit unions: a complete guide.

Who can join: living or working in the Termonmaguirk area

Membership of a credit union is based on a common bond, and Termonmaguirk Credit Union's bond is "residence or employment in the parish of Termonmaguirc or within a radius of 5 miles of Loughmacrory, Omagh, Co Tyrone"². If you live or work inside that area, you can apply to join. If you do not, you would need to look for a credit union whose common bond covers where you live or work.

Credit unions set their own common bonds, and they vary widely. Stevenage Credit Union, for example, is open to anyone who lives or works in Hertfordshire²⁰. Merthyr Tydfil Borough Credit Union is open to people who live or work in Merthyr Tydfil, Caerphilly, Blaenau Gwent or Rhondda Cynon Taf¹¹. Capital Credit Union is open to anyone living or working in the East of Scotland, employed by one of its select partners, or a member of Community Trade Union²¹. The principle is the same everywhere: you must fall within the common bond to join.

To find a credit union that covers your area, the trade body's finder website at www.findyourcreditunion.co.uk can help, or you can call 0800 015 3060⁶.

Opening an account: the ID and address evidence you need

Opening an account at Termonmaguirk Credit Union requires photographic ID and separate address verification for adult accounts². The photographic ID can be a passport, a driving licence, an electoral or student card, or a Translink ID card². For a minor account, the credit union asks for the child's long birth certificate or a current valid passport, plus address verification for the parent or guardian².

If you are applying for a loan, the credit union asks for 6 weekly payslips or 3 monthly payslips, and 3 months of most recent bank statements⁴. Self-employed members need their most recent annual accounts, or gross annual income from the most recent SA302 with a tax year overview⁴.

Credit unions generally ask for two recent documents to prove identity and address, such as a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill²². Some also ask for proof of National Insurance number, such as a payslip or benefit letter²³. The exact list varies by credit union, so it is worth checking with the office before you go in.

Getting your money out: cash, cheque and transfer withdrawals

Termonmaguirk Credit Union sets no limit on cheque withdrawals and no limit on electronic fund transfer withdrawals¹. Cheques can be made payable to a third party¹. Electronic fund transfers, however, can only be transferred to the member's own bank account, not to someone else's¹.

That distinction matters if you want to send money to another person. A cheque made payable to a third party is the route the credit union offers for that; an electronic transfer is restricted to your own account. Credit unions generally offer several ways to get your money out: cashing a cheque at a local Post Office, cash from the local credit union office, payment directly into a bank account, or a debit card at a cash machine if the credit union operates a current account²⁴.

Other credit unions do set notice periods on larger cash withdrawals. Stevenage Credit Union, for example, asks for 24 hours' notice on cash withdrawals over £500, and says larger amounts need seven days' notice²⁵. Termonmaguirk does not publish a notice period, so if you need a large amount in cash it is worth checking with the office first. For the wider picture on day-to-day banking, see Current accounts: a complete guide.

Nominating a beneficiary and what happens when a member dies

Termonmaguirk Credit Union offers a free nomination service, and the nomination form is a legally binding document naming a beneficiary². The proceeds pass outside the will and are not subject to lengthy probate, and a new nomination revokes any previous one². Members are encouraged to complete a nomination form, and the credit union also provides Death Benefit Insurance for eligible members¹.

When a member dies, the next of kin should provide the credit union with a copy of the deceased member's death certificate². The insurance claim is sent to ECCU Assurance, and the proceeds are deposited to the deceased member's account and disbursed according to the nomination, the will, or the rules of intestacy².

Credit unions generally offer a nomination facility, which lets you say who should receive the property of your accounts on your death²⁶. Some credit unions ask new members to nominate a beneficiary when they open an account, and let you change the name at any time²⁷. If you have not made a nomination, the money is distributed according to your will or the rules of intestacy, which can take longer. For more on what happens to money after a death, see Life events: money through life's big changes.

How members' savings are protected

Savings with Termonmaguirk Credit Union are 100% protected, and the credit union states that savings are protected by the Financial Services Compensation Scheme¹. Credit unions in Northern Ireland are covered by the FSCS, which protects members' savings if a bank or credit union fails¹⁰. The FSCS is the UK's statutory compensation scheme for financial firms.

The credit union is regulated by the Financial Conduct Authority and the Prudential Regulation Authority¹. It appears on the FCA register with reference number 573928, with permission to accept deposits³. It also appears on the Bank of England's list of credit unions incorporated in the UK²⁴. All officials of the credit union, whether volunteers or staff, are fidelity bonded¹.

Beyond the FSCS, Termonmaguirk Credit Union provides Life Savings Insurance at no direct cost to the member, which covers members' savings¹². Some credit unions also participate in the Savings Protection Scheme operated by the Irish League of Credit Unions, which provides extra protection by offering financial assistance to any credit union in difficulty¹⁵. The credit union's own financial statements are prepared each month and displayed in the office, and quarterly and annual certified returns are lodged with the FCA and PRA and are on public record¹.

Contacting Termonmaguirk Credit Union and complaining

The credit union's website is www.termonmaguirkcu.co.uk³. The site carries pages for savings, loans, membership, insurance and financial wellbeing, and the office can be contacted directly for anything not covered online¹.

If something goes wrong, the first step is to complain to the credit union itself. Credit unions generally have a complaints procedure, and if you are not satisfied with the response you can take the complaint to the Financial Ombudsman Service, which is free and independent. The ombudsman can look at complaints about credit unions and other financial firms. For more on your rights when things go wrong, see Consumer protection in UK financial services: a complete guide.

If you are struggling with debt, free and impartial help is available. StepChange offers free debt advice⁶, and Christians Against Poverty runs a free money course designed to give you budgeting skills and confidence¹⁶. The Consumer Council also provides help and advice on illegal lending³². For more on debt options, see Debt: a complete guide to help, solutions and your rights.