Frequently Asked Questions:
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How your credit union savings account works?
Once you start saving regularly your funds build up quickly. Each share saved is eligible for a dividend at the end of the year. The more savings you have the more dividend you receive.
By saving regularly you not only help yourself, you also help your community as your savings provide a loan fund for other credit union members.
Benefits of a credit union savings account
- Your savings do make a difference to you and Tipperary Credit Union
- Your savings form the common pool of funds that allow members to borrow
- Your savings are insured and guaranteed
- Your savings are eligible for a Dividend
- Your savings provide you with financial independence
- Your savings provide you with a loan, should you wish to borrow
- Your Savings are 100% Safe and Guaranteed
- You have Free Life Savings Insurance on your savings click on the link to download a brochure Free-Member-Insurance-Products-Brochure
Withdrawing your savings
Members can withdraw their credit union savings provided they are not pledged as security for a loan. However, as far as possible, members are encouraged to keep their savings intact, thus ensuring:
- You continue to earn a dividend
- You continue to benefit from Life Savings Insurance
- Your credit worthiness and capacity to borrow is maintained.
Note: Dividend on shares is calculated by reference to the closing share balance at the end of each day.
The government guarantee scheme covers each individual member’s savings up to €100,000. In addition to this, the Savings Protection Scheme (SPS) owned and operated by the Irish League of Credit Unions is also available to pro actively intervene to protect members’ savings by making available financial assistance to help any credit union which may experience difficulties.
Members’ savings are also insured through Life Savings Insurance (subject to certain terms and conditions).
Dirt Tax and Your savings
Dirt Tax & Your Savings
All credit union share dividend and deposit interest paid to members will be subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT. The only members who can be exempt are:
- Members aged over 65 whose total income is less than the relevant limit, currently €18,000 for an individual and €36,000 for a married couple. For married couples, only one of the spouses needs to be over 65. To avail of this exemption, you must sign a self-declaration form DE1. This form is available in your credit union and is a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit.
- Members who are permanently incapacitated should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association. Credit Unions have no role in approving the exemption in these cases.
If you do not complete the self-declaration form, the Credit Union will be obliged to deduct DIRT from your dividend or interest. You will then have to apply directly to the Revenue Commissioners for a refund of this DIRT (if you are eligible).
To download a DE1 form click on the link provided http://www.revenue.ie/en/tax/dirt/leaflets/de1.html
For further information visit www.revenue.ie