West Sussex and Surrey Credit Union

Boom Community Bank is a credit union that lends and takes savings, with personal loans from £300 to £10,000 and savings accounts open to people aged 16 or over who live or work in its local area¹. It is a not-for-profit: any surplus is reinvested or paid to members as dividends¹. Last year it approved £3.9 million in loans across 2,273 individual loans, at an average of £1,570 each¹. It also trades as Boom! Credit Union, and was previously known under a different name before becoming West Sussex and Surrey Credit Union¹.

A credit union is a member-owned financial co-operative, not a bank or building society³. Boom describes itself as not-for-profit: any surplus is reinvested in the business or paid back to members as dividends⁴. It offers two main product types: loans, including personal, family and consolidation loans, and savings accounts for adults, children and organisations, plus a scheme that lets employees save straight from their salary³. Membership is built around a "common bond" area covering West Sussex, Surrey and neighbouring parts of southern England³.

Loans from Boom Community Bank: what you can borrow and what for

Boom lends to people who live or work in West Sussex, Surrey, Kingston, north Hampshire or Berkshire and meet its criteria, and borrowers must be at least 18 years old and pass an affordability and financial assessment⁶. Its loans can be used for any purpose, and Boom says its loans are suited to debt consolidation, with the option of repaying your existing creditors directly rather than the money passing through your account⁷.

The range is made up of several named loan products rather than a single loan. Boom's loan selector page sets out an Access Loan, a Family Loan, a Choice Loan and an Advantage Loan, each aimed at different circumstances and borrowing needs⁸. The Family Loan is part of a service Boom describes as providing "safe, affordable family loans"⁹. Because loan amounts, terms and repayments vary by product and are reviewed regularly, the current figures for each loan are on Boom's own loan pages rather than here; the general guides on personal loans and credit unions explain how loan costs and APRs work.

Two charges Boom does not make are worth noting: it states there are no arrangement fees and no early repayment penalties on its loans⁶. That early settlement freedom is common across the credit union sector; Enterprise Credit Union, for example, tells its members they can pay off a loan early at any time with no financial penalties or fees¹⁰. Boom also reports that it approved £3.9 million in loans last year across 2,273 individual loans, an average of £1,570 each⁶.

If problem debts are the reason for considering a credit union loan, free help exists before borrowing. StepChange explains how credit union loans work alongside other options¹¹, and its emergency funding guide covers sources of help when money is short¹². On consolidation loans, nidirect warns that you may be encouraged to take out insurance with the loan, and that it is worth checking whether it is needed and whether a claim could be made on it¹³.

Saving alongside a loan is compulsory

Boom operates what it calls a mandatory concurrent savings policy for borrowers: anyone who borrows must also save, and the savings requirement adds 10% to 20% to the loan repayment amount⁹. The savings built up alongside the loan are held in your account but are linked to the loan arrangement, which means they cannot be withdrawn until the loan has been repaid³.

This is not unusual among credit unions, though the details vary. Smart Money Community Credit Union says everyone who borrows from it saves too¹⁴. GMB Credit Union asks members with a savings secured loan to save a small amount each month or week on top of the repayment¹⁵, and its consolidation loan requires borrowers to keep 10% of the outstanding loan balance in their savings account, with any savings above that threshold available to withdraw¹⁶.

The practical effect for a Boom borrower is that each repayment covers both the loan and a growing pot of savings. The money is yours, it earns any dividend the credit union pays, and it is released once the loan is cleared. It is a structure designed to leave borrowers with savings at the end of the term rather than nothing, but it does mean the monthly outgoing is higher than the loan repayment alone, which matters when working out affordability.

Savings, junior savings and saving through your employer

Boom's savings side has four parts: a personal Savings Account, a Junior Savings Account, a Payroll Savings Scheme and a Corporate Savings Account³. The personal savings account is open to anyone aged 16 or older who lives or works within the common bond area³. Boom reported 12,052 members saving with it, holding £8,810,000 in total, an average of £731 per member³.

The Junior Savings Account is exclusively for those under 16 and rewards saving with an annual interest rate rather than the dividend paid on adult accounts³. Junior savings accounts are a common credit union product; Capital Credit Union, for example, runs a Junior Savers Account for children¹⁷. Saving for children is covered in more depth in the guide to savings accounts.

The Payroll Savings Scheme, branded "My Money Box", enables hundreds of local employees to save directly from their salary³. Payroll deduction is a long-standing credit union mechanism: London Capital Credit Union describes members paying into their savings directly from wages or salary each pay day via payroll deduction¹⁸. If your employer is one of Boom's partner employers, you can usually arrange for a fixed amount to leave your pay packet each month before you see it, which is one of the simplest ways to build a savings habit.

Businesses, churches, charities and other organisations such as social enterprises can also open a non-personal corporate savings account, provided they are based within the common bond area³. Boom also allows members to hold savings for different goals, a pattern seen across the sector, where credit unions let members open additional accounts for budgeting, Christmas or general saving¹⁰.

Dividends on savings are paid, not promised

Adult savings with Boom do not pay a fixed rate of interest. Instead, the credit union aims to pay a dividend out of its surplus, and Boom states plainly that dividend payments are not guaranteed³. This is how credit union savings generally work: London Capital Credit Union pays "a 'dividend' rather than a fixed rate of interest", with surpluses distributed back to members¹⁸, and Enterprise Credit Union's dividend is proposed by its board and voted on by members at the AGM¹⁰. Independent guidance confirms that credit unions normally pay a dividend once a year, with the amount depending on how much you have saved and how much profit the credit union has made¹⁹.

Boom's dividend is calculated daily and linked to each £1 of savings held in your account, specifically to dividend-bearing shares, on that particular day³. Its financial year runs from October to September, and if dividends are disbursed they are credited to your account in April for the preceding financial year³. So a member saving steadily through the year would see any dividend arrive the April after the financial year closes.

The key point for a saver comparing a credit union with a bank is the nature of the return. A bank or building society savings account quotes an interest rate you can rely on; a credit union dividend depends on the year's surplus and a decision of the board and members. In a good year it may compare well; in a weak year there may be nothing at all. The trade-off is that the money stays within a local, member-owned institution. The savings accounts guide explains how interest is paid on conventional accounts for comparison.

Who can join: the common bond area

Every credit union in the UK may only accept members who share a "common bond"²⁰. The common bond is what defines who the credit union serves: it can be living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union²¹. Anyone can become a member of a credit union, but you must share that bond with the other members²².

Boom's common bond area covers Berkshire, South Oxfordshire District, Kingston upon Thames, Surrey, West Sussex, East Hampshire (the Basingstoke and Deane, Hart and Rushmoor districts), South Bucks and Wycombe Districts³. In practice, if you live or work anywhere in that area, you can apply to join. For loans, Boom states eligibility as living or working in West Sussex, Surrey, Kingston, north Hampshire or Berkshire and meeting its criteria⁶.

One useful extension: anyone in the household of a person with a common bond can usually join too¹¹. So if one member of a family lives or works in the area, others at the same address can generally become members in their own right. To become a member, you need to visit or call your chosen credit union to confirm what information you need to join²², and Boom's website sets out its own joining process. The credit unions guide explains the sector as a whole, and the Find Your Credit Union service helps locate the credit union covering any address²².

Applying for a loan: credit check, Open Banking and payout

Boom's application process combines membership, a credit check and Open Banking in one flow. Your membership is registered as part of the application, so there is no separate joining step before you apply²³. Boom will run a credit check with TransUnion when you apply, and this is a hard search, which means it will leave a footprint on your credit report⁶. If you are planning other borrowing, the guide to credit scores and credit reports explains how hard searches affect your file.

Alongside the credit check, Boom uses Open Banking to take secure read-only access to view your bank statements, through a service called Consents.online⁷. Open Banking is now a standard part of credit union and community bank lending: GMB Credit Union's loans are subject to a credit search and Open Banking¹⁶, and Enterprise Credit Union says that as part of its assessment it may carry out searches with credit reference agencies and fraud prevention agencies and may use Open Banking with consent¹⁰. Boom will also ask you to supply specific documents, including a valid photo ID, to pay out an approved loan⁷.

On timing, Boom aims to respond within one working day of an application, and says that if it requires additional information during the process you will hear from it within three working days⁶. Once a loan is approved, the funds are transferred to your account within 24 hours⁶. That is quicker than many credit unions: South Herts Credit Union, for instance, says a decision can usually be made within 3 to 7 working days²⁵. Boom assesses applications on affordability and personal circumstances as well as the credit file, a common approach across the sector²⁶.

Paying in and taking money out of your savings

Paying into a Boom savings account is by bank transfer. The deposit account is held with The Co-operative Bank, under the account name WSSCU LTD CAPITAL²⁷. The reference matters: each deposit must be referenced with your membership number followed by your first initial and surname, and if you hold more than one savings sub-account you add S1, S2, S3 or S4 to specify which account the funds should go into²⁷. Boom allocates your deposit to your savings account the following day after receiving your funds, and its operating days are Monday to Friday, excluding bank holidays²⁷. This attention to references is typical of the sector; London Capital Credit Union insists the membership number be used as the reference for every payment¹⁸.

On withdrawals, Boom's rule is that you can withdraw your savings at any time, except for savings associated with a loan arrangement: linked savings are accessible only after the loan has been repaid³. Across the sector, withdrawal terms vary. Pomeroy Credit Union allows withdrawals upon request²⁸, Baillieston Credit Union allows withdrawal at any time provided you do not have an outstanding loan balance greater than your savings²⁹, and South Herts Credit Union permits withdrawals while repaying a loan as long as the share balance does not fall below one-third of the current loan balance²⁵. Eastern Savings & Loans lets members withdraw or add funds whenever they need them, with deposits possible through loan repayments, bank transfers or directly from pay³⁰.

Free access to savings is one of the practical strengths of credit union saving. MoneyHelper notes that credit union accounts typically let you pay in or take out cash at the credit union, have money paid in such as wages, benefits and pensions, and use online, mobile or telephone banking²¹. The Building Societies Association describes the withdrawal routes available across the sector, including cashing a cheque at a local Post Office, collecting cash from a local credit union office, or payment directly into a bank account³¹. For Boom's current methods, check its savings pages, since arrangements differ between credit unions and change over time.

How your savings are protected

Money saved with Boom is protected by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme, in the same way as savings with banks and building societies⁵. Boom's own pages state that deposits are FSCS-protected⁷. The Welsh Government's guidance confirms that credit union loans and savings are protected by the FSCS³², and Great Western Credit Union tells its members the same about their eligible deposits³³.

On the level of protection, Boom's own pages give two figures: one states that deposits are safeguarded up to £120,000, and that the £85,000 limit relates to the combined amount in the eligible depositor's accounts²⁷, while another states the FSCS protects eligible depositors up to £120,000³. The FSCS's own protection checker shows the current limit that applies to individual circumstances⁵. Whichever figure applies, the protection covers the combined total across all accounts held with the one credit union, not per account.

If a credit union were to fail, the FSCS states you would get your money within seven working days of the failure⁵. Which? reports that deposit failure claims are paid within seven days of making a claim, and most commonly in two or three days³⁴, and its guide to what happens when a bank goes out of business covers the process for customers³⁵. The consumer protection guide sets out the wider protections that apply across UK financial services.

Contacting Boom and making a complaint

Boom's website, boomcb.org.uk, is its main channel, and the firm states it aims to respond within one working day⁹. Its operating days are Monday to Friday, excluding bank holidays²⁷. For anything specific to a product, a loan application in progress or a savings deposit, the details, including current phone and contact arrangements, are on its loan and savings pages⁶.

If something goes wrong, start by raising it with Boom directly and giving it the chance to put it right; its stated one-working-day response aim applies to enquiries⁹. If a dispute with a financial firm cannot be resolved, the consumer protection guide explains your rights and the routes for escalating complaints, and free impartial help is available from MoneyHelper²¹. For debt problems connected to a Boom loan, the debt guide sets out the free advice options, including StepChange¹¹, National Debtline¹⁹ and Business Debtline for the self-employed³⁶.