Waterside Credit Union

Waterside Credit Union is a not-for-profit, member-owned financial cooperative that offers its members savings accounts and loans. It is not a bank. Members save into a share account, and the credit union lends from the pool those savings create. Members who are 18 years or older can apply for a loan in-person, online, or via phone, and a minimum balance of £10.00 is required¹.

The practical details matter more than the structure. The maximum savings balance permitted is £25,000 across all your savings accounts, a minimum balance of £10.00 is required, and there is an entrance fee of £1.00³. Loan repayment terms range from 1 month to 10 years depending on the purpose of the loan, and there are no penalties for paying off a loan early⁵. First-time loan applicants must submit their application in person at the office; existing borrowers can apply in person, by telephone or through the members section of the website⁵.

This page covers what Waterside offers across its products, how joining works, what happens if repayments become difficult, how to complain, and where protection for your money begins and stops.

What Waterside Credit Union offers: savings and loans

All credit unions offer savings accounts and loans, and Waterside is no exception⁷. MoneyHelper describes a credit union as providing loans, savings, bank accounts and other services to its members⁶. Waterside describes itself as a community-based, not-for-profit financial provider¹.

Alongside the core share account and loan book, Waterside offers Life Savings Insurance cover on the savings of eligible members³. That is an insurance product rather than a savings product, and the cover is provided by an insurer rather than by the credit union itself, so the terms that apply are the insurer's. The credit union's own site carries the current details.

Larger credit unions in the wider movement offer extra services such as Christmas savings accounts, cash ISAs, budgeting accounts, current accounts and debt management, and some offer travel, motor, home insurance and funeral plans⁸. What a particular credit union offers varies, so the products listed on Waterside's own pages are the ones to check rather than assuming the full range.

If you are weighing up whether a credit union suits you at all, the credit unions guide sets out how the model works across the UK, and the savings guide and loans guide cover the wider market these products sit in.

Saving with Waterside: how your share account works

A credit union savings account is called a share account because each member owns a share of the credit union⁹. That is the difference between a credit union and a bank: you are not a customer, you are a member-owner, and the credit union exists for the benefit of its members rather than to make a profit for outside shareholders¹⁰.

The return on savings works differently too. Rather than a fixed rate of interest, a credit union may pay a dividend out of whatever surplus is available at the end of the year, and shares are eligible for a dividend depending on that surplus⁸. The profit a credit union makes is shared among savings accounts as a dividend, with some reinvested to improve services⁸. Dividends are distributed annually and are known as a dividend¹¹. Because a dividend depends on the surplus, it is not guaranteed in the way a contractual interest rate is.

There are practical limits on the account. The maximum savings balance permitted is £25,000 across all your savings accounts, and a minimum balance of £10.00 is required³. The maximum cash withdrawal allowed is £2,000 per transaction³. Members are also encouraged to complete a Nomination of Beneficiary Form, which records who should receive the savings after the member dies⁴.

Loans from Waterside Credit Union: terms and early repayment

Repayment terms at Waterside range from 1 month to 10 years, depending on the purpose of the loan, and there are no penalties for paying off your loan early⁵. The credit union states that over 95% of loans are approved, though all loans remain subject to approval and the availability of funds⁵.

Early repayment without penalty is a common feature across the movement rather than something unique to Waterside. Ulster Federal Credit Union, for example, lets members pay off a loan early, make additional lump sum repayments or increase regular repayments without a penalty¹². The Affordable Credit Code of Good Practice, which some lenders sign up to, states that customers should have the option to repay early with no additional costs, and that payment holidays and breathing space should be provided as with other lending products¹³.

How the interest is worked out matters as much as the headline term. Some credit unions calculate loans on the repayment plus interest method, which means the interest is worked out on the amount borrowed rather than on the reducing balance¹⁴. That method can make a loan more expensive than the same headline rate charged on a reducing balance, so it is worth asking which method applies before signing.

Waterside's own loan pages carry the current terms and the purposes it will lend for. The loans guide explains how repayment methods differ across the wider market.

How pledged savings secure a loan

When you borrow from a credit union, the savings you already hold are usually tied to the loan. At Waterside, if your shares or savings are equal to or less than the loan amount, they are pledged as security and cannot be withdrawn⁵. Savings deposited after the loan is granted may be withdrawn, provided the loan is not in arrears⁵.

This is standard practice across the movement. Dungiven Credit Union, for instance, allows a member with no loan account to withdraw part or all of their savings at any time during normal office hours, but savings become pledged and may not be withdrawn when a loan exceeds the savings amount, and any balance above the loan amount may be withdrawn from time to time¹⁵. Walsave Credit Union takes a similar approach: while you have an outstanding loan, you can only withdraw savings from your Regular Saver that are above your remaining loan balance¹⁶.

The effect for a borrower is that the savings act as a cushion for the lender and as a restriction for you. It is one reason credit union loans can be offered to people who would struggle to borrow elsewhere, and one reason it is worth thinking about how much of your savings you may need access to before you borrow against them.

Who can borrow and what you need to apply

Members who are 18 years or older can apply for a loan in person, online, or via phone, though first-time applicants must submit their application in person at the office⁵. Proof of income, a guarantor, and/or other conditions may be necessary⁵. You must be a member of the credit union to borrow from it, which is true across the movement¹⁷.

The application itself has to be complete. A loan application form must be fully completed for all loans, and a loan agreement must be completed and signed before any funds are paid out¹⁹. Each loan is paid into your nominated bank account¹⁹.

Some credit unions set a minimum saving requirement while a loan is being repaid. Riverside Credit Union, for example, expects all borrowers to continue saving at least £5 a week, or £20 a month, while they pay off their loan¹⁴. Whether Waterside sets a similar expectation is a question for its own loan terms.

Credit unions also lend for particular purposes and to particular groups. Walsave Credit Union will grant loans for any good purpose if the member shows a need and can prove ability and intent to repay¹⁶. Riverside Credit Union offers an Instant Loan of up to £2,000 to members who receive Child Benefit and transfer it into their credit union account²⁰. The purposes Waterside will lend for are set out on its own loan pages.

Joining Waterside Credit Union: fees, ID and first steps

Joining starts with membership. Waterside charges an entrance fee of £1.00, and a minimum balance of £10.00 is required⁴. Across the movement, membership normally means being asked to pay a small fee, for example £2, or to save a certain amount such as £10⁶. Some credit unions charge nothing at all: Citysave Credit Union West Midlands lists both a free joining fee and a free membership fee²¹.

New members must provide proof of identity and address verification⁴. Accepted photo identification includes a current driving licence, a valid passport or an electoral ID card⁴. For junior members, a full birth certificate or a valid passport is accepted⁴. The credit union asks for these documents to meet its own identity checks⁴.

MoneyHelper's general guidance is that you will usually need to provide two recent documents to prove your identity and address, such as a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill⁶. The best route is to visit or call your chosen credit union to confirm exactly what it needs before you gather documents⁷.

Once you are a member, you can pay into your savings by standing order, by having Child Benefit paid directly into your account, or directly from your salary through payroll deductions⁸. Other credit unions accept cash at the counter, cheque, or online payments from your bank or building society by setting up the credit union as a beneficiary²².

Struggling with repayments: talk to the credit union first

Waterside asks members who find themselves struggling with repayments to talk to the credit union first, so that options can be explored together¹. That is not just a courtesy. Credit unions generally would rather arrange a workable repayment plan than lose a member to default.

The wider evidence on how members are treated is encouraging. Members who fall behind with payments at Riverside Credit Union are able to come to an arrangement, and are able to have another loan in the future without arrears adversely affecting their credit rating, though failure to repay and respond may lead to court action¹⁴. The same principle applies at Waterside: the earlier you make contact, the more options are likely to be open.

If money is tight more generally, there is free help. StepChange's guidance for people finding it difficult to get credit is to see if there is a credit union in your area instead, or to see if you can borrow from the Social Fund²³. You can search for your local credit union through the Association of British Credit Unions' website or by calling 0800 015 3060²⁴. Over half of those struggling with credit repayments have been in difficulty for over six months, which is a reason to seek help early rather than wait²⁵.

If your difficulties involve other debts, the debt guide sets out the options, and the benefits guide covers support you may be entitled to. If you are in work, talking to someone senior that you trust, such as your line manager, or to your HR department in confidence, or checking with your union, are all routes that exist²⁶.

Making a complaint and taking it to the Financial Ombudsman

Waterside defines a complaint as any oral or written expression of dissatisfaction, whether justified or not, which alleges that the complainant has suffered or may suffer financial loss, material distress or material inconvenience²⁸. That is a wide definition, and it means a complaint does not have to be about money to count.

The credit union aims to resolve complaints to the complainant's satisfaction by the close of business on the third business day after receipt²⁸. If the complaint cannot be resolved quickly and within three business days, an acknowledgement will be sent to the complainant²⁸. If it is still unresolved within 8 weeks of receiving a complaint, the credit union will send a final response or a response explaining the delay²⁸. Complainants who are dissatisfied with the final response may refer the complaint to the Financial Ombudsman Service within 6 months of receipt of that response²⁸.

The Financial Ombudsman Service is free to use. Its own process is to make a formal complaint to the company first, then fill in the complaint form; a case handler is assigned and may ask for more information²⁹. If the company does not send a final response letter within eight weeks, or you are unhappy with the response, you can bring the complaint to the Ombudsman³⁰. MoneyHelper's guidance is the same: take your complaint to the free Financial Ombudsman Service if you are unhappy with the final response or the timeframe has passed⁶.

The Ombudsman can look at a range of credit complaints. Consumers who feel they have either been given unaffordable credit, or that the lender acted irresponsibly in providing the product, may be able to complain to the Financial Ombudsman Service³¹. Under the Consumer Credit Act 2006 there are rights to complain to the Financial Ombudsman Service about how a lender or debt collection agency has treated you³². Complaints about credit reference agencies follow the same route: raise a formal complaint with the agency, and escalate to the Financial Ombudsman Service if unresolved³³.

How members' savings are protected

Savings with Waterside Credit Union are covered by the Financial Services Compensation Scheme, the same safety net that covers banks and building societies⁸. MoneyHelper puts the limit plainly: just like most banks, up to £120,000 per person is protected in a credit union account⁶. Credit unions are members of the Financial Services Compensation Scheme, which provides a safety net should a bank, building society or credit union collapse³⁶.

If you hold savings in more than one credit union, each is protected separately, but savings held in several accounts with the same credit union count together towards the one limit. That is worth knowing if you are approaching the £25,000 maximum savings balance Waterside permits, because the two figures are not related: the £25,000 is the credit union's own cap on what you can hold with it, while the £120,000 is the statutory protection limit³.

Waterside Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority²⁸. It appears on the Bank of England's list of credit unions incorporated in the UK³⁷. Credit unions are regulated by the Financial Conduct Authority³⁸. You can check a firm's status yourself on the FCA Register using the reference number.

The credit union is also covered by the Financial Ombudsman Service, which means a dispute that cannot be settled directly can be taken to an independent body at no cost²⁸. The consumer protection guide explains how these protections work across financial services, and the credit unions guide covers the wider movement.

Savings held in several accounts with the same credit union count together towards that one limit, so spreading money across accounts with one provider does not increase the amount protected⁶.