1. Share Account
- Membership qualifying shares
Upon signing up for membership, members are required to purchase a minimum of ten (10) shares at five dollars ($5.00) each. These ten shares represent the member’s “qualifying shares”.
- Qualifying shares represent “ownership” in the credit union, entitling the member to yearly dividend, once approved by the Annual General Meeting (AGM), and to receive loans from the credit union.
- Members are, then, required to continue purchasing, a minimum of, TEN (10) shares, monthly, in order to remain an “active” credit union member. This monthly purchase is added to your initial share purchase.
- There is a one-time membership fee of ten dollars ($10.00) which is payable when the member initially signs up for membership.
- Deposits to your share account may be made by payroll deduction and/or over-the-counter.
- Dividend is paid, once-yearly, on members' share accounts. This rate is decided by the members, present at an AGM. At the 2019 AGM, the members agreed on a dividend rate of 3.0%.
- Presently, there is a four dollar ($4.00) withdrawal fee charged for each withdrawal from members' shares, plus Value Added Tax (VAT) of forty-eight cents (.48).
Credit Union members are encouraged to be thrifty and to save. Therefore, it is recommended that, when a member needs money, they apply for a loan, even if they have enough money on the share account to withdraw the requested amount.
A person has to be at least sixteen (16) years of age to open a SHARE (membership) account, with the Public Workers' Co-operative Credit Union Limited.
2. Deposit Account
- In addition to a SHARE account, a member can open a DEPOSIT account. There is no minimum amount required to open a DEPOSIT account.
- A DEPOSIT account allows members to deposit funds, via payroll and/or over-the-counter, and withdraw these funds, upon demand.
- There is, presently, a fifty cents (.50ء) withdrawal fee applied for each withdrawal, plus VAT of six cents (.06).
- This DEPOSIT account can also be utilized as an Educational or Vacation account, allowing members to save funds, monthly, towards tuition for themselves and/or their children, or towards defraying the costs of a planned vacation.
- Persons, under sixteen (16) years of age, can be encouraged to save by opening a DEPOSIT account in their name. This would show them, at an early age, the importance of saving.
- Interest, to be approved by the AGM, is paid once per year, on all DEPOSIT accounts. The interest, approved at the 2019 AGM was 3.0%.
3. Christmas club account
- In addition to a SHARE account; which is mandatory for membership, and a DEPOSIT account; which is optional, members can also open a CHRISTMAS CLUB account, also optional.
- A CHRISTMAS CLUB account can be opened at any time and there is no minimum deposit amount. Interest, at 3%, is calculated on all funds deposited from December of the previous year to November 30th of the current year. All funds deposited, plus interest, are avalable for collection, beginning the first week in December, of that current year.
- Persons, under sixteen (16) years of age, can be encouraged to open a CHRISTMAS CLUB account, to assist them with learning the importance of saving.
- All members of PWCCUL are eligible for loans after a minimum of four (4) monthly deductions/contributions have been received.
- Only members may apply for loans and loans are granted for any good purpose, primarily, based on the member’s ability to repay the loan. Additionally, the member’s record of saving, and any previous loan payment history, is taken into account when considering their loan application.
- Loans are generally approved on a twice-times-shares basis. For example, if a member has saved, say $500.00, in his/her share account, he/she would be eligible for $1,000.00 (i.e. $500.00 x 2). However, larger amounts can be approved by the Board and/or Credit Committee, depending on the purpose of the loan, the ability of the member to repay the loan, and the documentation presented in support of this loan request.
- Presently, the maximum loan amount is $100,000.00, with a maximum repayment period of fifteen (15) years.
- Interest, on loans, is charged at 1% per month, on the reducing loan balance.
- The loan processing fee is one hundred & seventy-five dollars ($175.00); plus VAT of twenty-one dollars ($21.00).
- Members are encouraged to continue saving, particularly when repaying a loan.
- When you borrow remember:
- You are availing of the money saved by all the members.
- You get the loan because you have demonstrated a need, and an ability to repay the loan.
- You have shown integrity and can be relied on to repay the loan.
- You have demonstrated your ability to save.
- The savings and repayments of loans, by members, are the source of funds for the credit union to pay its expenses, and for other members to borrow in the future.
- When you borrow from PWCCUL you do so as a member/owner and not a customer paying for goods or services. PWCCUL- issued loans are available to members to help when a need exists, and not to make a profit at that member’s expense.
Term (Fixed) Deposits
As of February 1st, 2015, members, and non-members, can invest a minimum of one thousand dollars ($1,000), and a maximum of fifty thousand dollars ($50,000.00), in the following fixed deposits:
One (1) year - 1.5%
Two (2) years - 1.75%
Three (3) years - 2.0%
Four (4) years - 3%
Aditional Products / Services
- Financial Management Advice is given free-of-charge, to all members who request it or who have been identified (eg. by the Credit Committee) as requiring this form of financial intervention.
- Insured Funds: all members’ savings and loans are insured by the Bahamas Co-operative League Insurance Brokerage Limited, and are paid for by the credit union. Presently, the insurable amounts are $20,000.00 (shares) and $100,000 (loan), which means that upon the death of a member; his/her beneficiary (ies) would receive all of their savings, in addition to a matching amount (up to a maximum of $20,000.00) from the Insurance Company. Additionally, the member’s loan (if any) would be paid off in full (up to a maximum of ($100,000.00). This is all at NO COST to the member.
- Credit Card: All members who have: 1) at least five hundred dollars ($500.00), on their SHARE accounts and; 2) been members of the credit union for, at least, six (6) months, are eligible to apply for a Scotiabank MasterCard. A major benefit of this credit card, for credit union members only, is that the interest rate is 4% less than the credit card issued directly by Scotiabank, to its banking customers. Presently the interest rate, for Scotiabank customers, is 18%, whilst the interest rate, for credit union members, is 14%.