Introducing a unique, free and ethical employee benefit from Kingdom Credit Union

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1 Introducing a unique, free and ethical employee benefit from Kingdom Credit Union Kingdom Credit Union Limited Main Street Methilhill Fife KY8 2DP 9 Albany Gate Glenrothes Fife KY7 5NP mainoffice@kingdomcu.org.uk

2 Kingdom Credit Union - who are we? Kingdom Credit Union is a not-for-profit financial organisation which is dedicated to serving the needs of its members. As part of a worldwide Credit Union movement promoting thrift, financial independence and co-operation, Kingdom Credit Union was established in June 2004 to serve the communities of Fife. Currently we manage around 2.7million savings for over 5,000 members throughout the whole of Fife and provide ethical financial products to the whole community. Kingdom Credit Union currently provides saving and borrowing opportunities via payroll deduction through a number of employers in Fife, including our own local authority and largest employer Fife Council. All Credit Unions have a common bond which determines who can join it. Membership of Kingdom Credit Union is open to everyone living or working within Fife. We are a fully inclusive financial organisation and welcome members of any age from all walks of life. Kingdom Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Firm Reference Number

3 What s so special about Credit Unions? Everyone seems to be after your money these days. TV, newspapers and magazines are packed with adverts offering savings schemes or loans. So why would you choose to use a Credit Union? Here are a few reasons we can think of: We can offer an easy way to save. It s an affordable way to borrow if you need to. We offer life insurance on savings and loans at no extra cost. Credit Unions exist ONLY to serve their members so ALL profits are returned to members in the form of an annual dividend - you ll find no fat cat bonuses here. More money stays in the community helping individuals and local businesses alike. All Credit Unions are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. We are also fully insured under the Financial Services Compensation Scheme which guarantees that your savings will always be 100% safe. Our members are part of a worldwide movement promoting thrift, financial independence and co-operation. We offer savings schemes for young people too with Kingdom Credit Union aiming to pay a 4% annual dividend on junior accounts to encourage young people to start a saving habit we hope will remain with them throughout their lives.

4 Why offer Credit Union membership as a staff benefit? Benefits for your organisation: Increasing the customer base of local credit unions will make them more sustainable, so promoting them to your employees is a form of corporate social responsibility. Credit unions foster a responsible attitude towards credit and promote personal financial stability, assisting with the welfare aspects of being a caring employer. For minimum cost and effort you can provide a valued staff benefit which can help recruitment and retention of staff. Financially stable employees are more likely to remain in their employment, improve their skills through training and experience less stress-related ill health, thereby reducing absence, improving employee wellbeing and fostering good staff relations. An easy to administer system - it works just like any other payroll deductions scheme you currently run. You just need to: a) set up an authorisation process; b) deduct payments; c) provide monthly listing to the credit union; d) pay money over to the credit union.

5 Why offer Credit Union membership as a staff benefit? Benefits for your employees: People who save regularly are better able to cope with any financial distress or unexpected cost, helping them to avoid the pitfalls of using payday lenders charging up to 5,000% APR Employees can improve their standard of living by accessing affordable loans (with no hidden charges) to pay for such things as a holiday, Christmas costs or for that unexpected expense when something breaks down. Loans repaid by payroll deduction attract a maximum interest rate of 12.7% APR. Free life insurance for savings and loans. A safe and ethical alternative for borrowing and saving. Taking charge of your finances and being financially independent can lead to a huge reduction in stress, ensuring staff spend less time worrying and more time enjoying a healthy work-life balance. Credit Union members can rest happy in the knowledge that, whether saving or borrowing, they are doing something practical and useful to help their local community.

6 We re not a bank, but we are quite good at: Savings Loans Community Customer Service We pay an annual dividend which has beaten bank interest rates for years Our transparent loan policies encourage sensible borrowing. We want our members to get the best deal because it s our community too We don t have customers, we have members, most of whom we know by name We encourage members to save regularly so that everyone s prepared for a rainy day Our maximum interest rate for loans repaid by payroll deduction is 12.7% APR Ensuring our members have access to affordable credit benefits the whole community We are committed to help anyone in financial difficulties and treat everyone with respect We can offer saving accounts for special occasions where funds are only released on a pre-agreed date All loans are checked and approved by a credit committee to ensure affordability and fairness Our inclusive membership policy means EVERYONE who lives or works in Fife can access our services We work closely with a range of other community groups to help members access other useful services

7 So what s the catch? We like to think there isn t one, but have to admit that we re probably a bit biased. If you find one, though, please let us know. Kingdom Credit Union prides itself on the transparency of its services and that means we have no hidden charges or fees. We do have one fee: we charge adults a one-off membership fee of After that there s no charge if we need to send you a letter, there s no charge if you pay your loan off early, there s no charge if your circumstances change and you have to take a bit longer to pay off your loan and all loans come with free life insurance. We think that s very reasonable and we hope you do too. There s no fee to open a junior account for your children or grandchildren, even if you re not a member yourself. Children under 18 years of age join free and their accounts automatically become adult accounts when they turn 18 (with no charge).

8 Who already offers Payroll Deduction for their employees? Kingdom Credit Union already have agreements in place with the following organisations in Fife: Fife Council. MGt plc. James Donaldson Timber Ltd. Fife Gingerbread. Home4Good. If you would like to know more about offering Credit Union membership as a staff benefit within your organisation please contact Susan Dryburgh or Lyn Prestwood