Ballinasloe Credit Union recently carried out a strategic review of its members savings position and have reluctantly taken the decision to introduce a savings limit of €30,000 per member with effect from 1st February 2020. A limit of €60,000 will apply to joint accounts i.e. € 30,000 per each individual member.
Members who hold more than €30,000 with Ballinasloe Credit Union can maintain their current savings balance but will not be able to increase it.
Should future withdrawals bring the savings balance below €30,000 at any stage, the limit will apply to future lodgements, so that the overall member savings balance remains at or below €30,000.
Members with less than €30,000 can continue to save up to the new limit of €30,000.
In the past year the total amount of member savings has increased by 6% from €100m to €106 million. While this savings increase underlines the confidence our members have in the Credit Union, it also adds significantly to our overall cost base both in terms of increased regulatory levies, insurance costs and the required allocations to reserves.
Ballinasloe Credit Union currently lends out 40% of all monies saved by members. The other 60% is invested in bonds and bank deposits and the return on these has fallen dramatically over the last few years and continues to fall.
If the current rate of savings growth were to continue, more of our surplus will have to be channelled into meeting the regulatory and other associated costs. This will limit the Boards ability to propose dividends or invest in new products/ services for members.
Your Credit Union is committed to continually improving member products and services. By introducing the savings limit the board is attempting to maximise the surplus available for investment in new products and services and to support the sustainable growth of the Credit Union into the future.
If you are unsure of what these changes mean for you, please refer to our website www.ballinasloecreditunion.ie where we have a frequently asked questions segment.
Alternatively, you can contact Ballinasloe Credit Union directly by phone on 090-9643179 or talk to us in branch.