We’re excited to be partnering with South Manchester Credit Union and Zync Digital for today’s brief to help spread the word about credit unions to the wider public. There’s also a great prize to be won for the winning idea!

Today’s brief is to create posters to encourage people to #JoinACreditUnion & promote the benefits of becoming a member. So, we’re hoping the OMBLES can help to bring to life some of the benefits listed below.

Please tweet your entries to @OneMinuteBriefs, @SMCreditUnion & @ZyncDigital with the hashtag #JoinACreditUnion

Prize:

£100 cash prize for the winner!!

What is a credit union?

A credit union is a community loans and savings provider. At the moment, there are over 400 credit unions in the UK, serving more than 2 million members.

The sector is making huge leaps forward, to offer the best and most convenient services possible.

As credit unions, we pride ourselves on being different from the high-street banks. We’re not-for-profit organisations, so you can rest assured we’ll always have your interests at heart.

When you become a credit union member, you become part of a community that exists to help its members improve their financial wellbeing.

You can join a credit union provided you share a common bond with their members - this can be based on where you live, where you work, or lots of other interests. To find your nearest credit union, click here.

As the financial implications of COVID-19 begin to become apparent, credit unions are going to be needed more than ever, to help people across the UK. That’s why we’re calling on the OMB community to help spread the word, to #JoinACreditUnion.

So, why should you join a credit union?

Membership benefits

As a member, you become a shared owner of the credit union. This means you have an equal right to vote democratically on how it’s run and managed.
Credit unions are ran by people, for people, meaning you get to vote on how the business operates.
Being part of a credit union means their products and services are created for their members, and not the other way around
Credit union products and services are designed with a focus on our members.
You can speak to a person who treats you fairly, with respect, and with no confusing language or jargon.
Free, impartial financial advice. If you come into financial difficulty, a credit union will do their best to guide you through that period.
Free and impartial advice. Credit unions will try their best to support you through any periods of financial difficulty, taking into account the realities of everyday life.
Credit unions do not discriminate - we work hard to support the financially excluded
Any interest gained from lending is reinvested into the organisation to improve our offering to members, or distributed as a dividend, based on the balance of your savings.
Interest gained from lending is reinvested into the credit union and its members, usually in the form of an annual dividend.
This is almost always higher than you’ll find with a high-street bank.

Borrowing
Credit unions offer very affordable interest rates on their loans, and are bound by law to charge a maximum of 42.6% APR on loans.
To put this into an example, if you borrow £500 for 12 months from a credit union, you’ll repay a total of £48.07 in interest. A payday lender can charge up to £448 in interest.
We turn borrowers into savers. Over 70% of people who borrow from a credit union, go on to build up their own savings after repaying their loan.
With each loan repayment, interest is charged on the reducing balance - this means with every repayment, you’ll pay less interest.
Credit unions take care with each loan application to make sure our account holders receive a good and fair deal

Saving

Save as much or as little as you like, when you like
Peace of mind. Your money is fully insured, up to £85,000, just as it would be in a bank or building society
Plenty of credit unions partner with companies to provide payroll deduction schemes. This means you save directly from your wages. This is proven to improve employee wellbeing, reduce stress, and improve productivity.

See our video intro to today’s brief for the OMBLES here:

About the brief partners:

Zync Digital

We are a digital marketing agency, working exclusively within the credit union and ethical finance sectors. We’re passionate about furthering the message of credit unions, via social media, paid online advertisement, blogs, content strategy and email marketing. Find out more about us.

SMCU

We are a community based credit union that provides savings accounts and loans to the people of South Manchester. We aim to promote responsible lending and borrowing. We look at loan applications with care and support our borrowers if they get into financial difficulties. We continuously make a positive difference to the lives of our account holders. Find out more about us.