SavingsA range of great saving options
Whether you’re saving for something in the future or just for a ‘rainy day’, regular saving is a good idea.
Regular saving with your St. Paul’s Garda Credit Union is an even better idea. At St. Paul’s, you’re not just a customer, you’re a member of a successful financial co-operative.
Each share you hold in your credit union is equal to €1. You will need to hold a minimum 10 shares (€10) in St. Paul’s. Members enjoy equal rights to vote (one member, one vote) and participate in decisions affecting the credit union.
Why save with a credit union?
Saving always makes sense but with St. Paul’s Garda Credit Union it’s even better because as a member you’re an owner with your say in how the credit union is run. Any surplus the credit union makes is invested in services or returned to you the member. What’s more, by saving in your credit union you know that your money is being retained to grant loans to other members – people like you.
How safe are my savings?
Credit unions are regulated by the Central Bank of Ireland- the same body that monitors banks and building societies. Credit unions are also bound by acts of the Oireachtas and are fully insured against theft and fraud so you can be confident that your savings are secure. Your Savings are covered by the Irish League of Credit Unions Savings Protection Scheme and also by the Government Deposit Guarantee Scheme up to a maximum of €100,000 per person per institution.
Savings limit of €100,000
From 1st January 2016, new regulations in S.I. No. 1 of 2016 specify that a member’s savings in a credit union must not exceed €100,000. The total figure includes all funds in your name and 50% of any funds in a Joint Account where you are a tenant.
Therefore Credit Unions cannot accept funds from members
- Which would increase their funds above the €100,000 limit, or
- If already over €100,000 limit, which would further increase their funds above the balance on 1st January 2016
Life Savings insurance
Life Savings insurance pays a benefit, to a maximum of €12,700, on your Shares at the time of your death.
- There is 100% cover on Shares lodged before age 55 for amounts up to €12,700.
- The cover is on a reducing scale on Shares lodged between ages 55 and 69.
- The maximum insurance benefit of €12,700 can only be gained by having at least €12,700 in Shares before age 55 and maintaining a balance of at least €12,700 in Shares until death.
- If you are 55 years of age or over, withdrawal of your Shares below €12,700 could have a negative impact on this cover.
St Paul’s Garda Credit Union Limited offer above cover (subject to terms & conditions as laid down by our insurer) at no direct charge to our members and it is paid as an operational expense by the Credit Union.
Can I have easy access to my savings?
You can withdraw your savings whenever you want provided that they are not pledged as security on a loan. Every member is however encouraged to continue saving as this means they will continue to benefit from life savings insurance and will carry on earning a dividend.
Dirt and your shares /savings in St Paul’s?
Your shares/savings in St Paul’s are treated as being a Special Share Account which means DIRT is applied and deducted at the prevailing rate (currently 39%). This satisfies your liability to Revenue in respect of any Dividend paid to your account in St Paul’s Garda Credit Union Limited.
Budget 2014 contains the following provisions regarding Deposit Interest Retention Tax (DIRT):
From 1st January 2014 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.
Can I be exempt from DIRT?
You can claim an exemption from the deduction of DIRT,
- 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 a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit. For further information and to obtain application form DE1 go to www.revenue.ie
- Members who are permanently incapacitated. Such members should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association. St Paul’s Garda Credit Union has no role in approving the exemption in these cases.
Note regarding existing Special Term Share Accounts
Special Term Share Accounts have been abolished in the 2014 Financial Budget and the tax free limits applicable have been removed and will not apply to Special Term Accounts opened after 16th October 2013.
Existing Special Term accounts can avail of the tax free amount for the remainder of their term.