Here are the answers to some frequently asked questions:
Credit Unions are savings and loans co-ops. They exist to provide loans at a fair interest rate for their members. All the members have something in common. What all the members of Money Box Credit Union have in common is that they live or work in Herefordshire. It’s a friendly, fair and ethical way to save and borrow- Community-run banking, if you like.
Yes, if you live or work in Herefordshire, you can join Money Box. Money Box welcomes everyone, whether you are in work, out of work, retired, disabled, a student, self employed or at home with children. To join, you simply fill in the application form, supply proof of identity and pay a one-off fee of £1.50.
Yes, Money Box is a good way to save for children, and for young people to learn to manage their money. Depending on the age of the child, a parent may need to sign for withdrawals. Obviously, Money Box cannot lend money to people under 18. Junior Application
Money Box offers loans, depending what you can afford to repay. Repayments can be spread over up to 5 years. All loan applications are looked at individually- you may be able to get a loan, even if you are not employed or a homeowner. All loans are at the same low rate of interest- part of the Credit Union principle of fairness. Loan Application.
Money Box charges 1% per month on the reducing loan amount, with no hidden charges. This is equal to 12.68% APR and is cheaper than most storecards, catalogue credit, credit cards or bank overdrafts. When you apply for a loan you will be told how much interest you will be charged- you’ll be surprised how it compares.
Because Money Box is run for its members, there are no shareholders taking a profit from your loan. Money Box is also run largely by volunteers, which helps keep the service friendly, local and low cost.
Yes, members are expected to save at least a few pounds a week. Loans are arranged so that you pay in savings at the same time and build up a nest egg for when the loan is repaid. We would want to see you to save regularly for at least a few weeks before offering you a loan. At the end of the year, savers get a dividend on their savings. For the last few years Money Box has paid 2% on savings.
Yes, many Money Box members do not have bank accounts. You can pay in cash savings, minimum £1 at a collection point. If you want a loan, the collectors will help you apply, and if it is approved you will have a cheque made out to Cash the next week. You can cash the cheque at a Post Office close to you, which you have to nominate on your aplication form. So far, there are two collection points in Hereford and one in Leominster, but we hope to open more soon. You can also always phone or email the office for help.
Firstly, because Money Box can probably offer you a better deal. Secondly, because you will be helping to keep Herefordshire prosperous- keeping your money local and offering a fair deal to other people. And thirdly because Money Box offers free insurance on savings and loans, so that if you were to die, the loan would be paid off and your savings could be doubled (depending on the member's age).
By setting up a standing order to pay into your Money Box account, or by joining a payroll deduction scheme, if your employer runs one. This is open to all Herefordshire Council employees, and to anyone else whose employer is willing to do it. If you want a loan or balance statement, you can also phone to request one. Click on our 'Employers' tab to check on businesses running the payroll deduction scheme.
Money Box Credit Union Limited is regulated by the Financial Services Authority (Firm Ref. No. 213974) which also regulates banks and building societies, and is a member of the Financial Services Industry Compensation Scheme. This means that your money is as safe as it would be with a bank. Money Box is a member of the Association of British Credit Unions Ltd (ABCUL), the largest governing body for Credit Unions in the UK. For more information, please click on the links below.
Money Box is an independent Co-operative run by and for its members. However it has had financial and practical assistance from a number of organisations, particularly Herefordshire Council. The Board of Money Box Credit Union would like to thank the following for their assistance.
Herefordshire Council
Herefordshire
Partnership
South Wye Regeneration Partnership
Church Urban Fund
Co-operative Community Dividend Fund