About Credit Unions
What is a Credit Union?
A Credit Union is a financial co-operative which encourages savings, thrift and education to enhance the social and economic well-being of its members. It is a not for profit organisation however it is not a charity and as such is obliged to ensure it conducts a professional financial business model with a responsible approach to lending, investing and other activities. Any surplus the Credit Union makes is reinvested for the benefit of our members and our communities.
Purpose
The traditional purpose of a Credit Union is to provide a vehicle for people to combine their resources for the benefit of all. At the same time members, as the owners benefit from profits generated by the activities of the Credit Union by way of high interest on savings, flexible easy access loans at competitive rates and minimal fees. Whilst we retain our core fundamental principles and values, Credit Unions now offer competitive products and services to our members. There is very little Credit Unions do not offer these days and we would encourage you to try out a Credit Union when considering your banking requirements.
The co-operative nature of the Credit Union allows ordinary members of the public to become owners of their very own financial institution, have a say on how it operates and who runs it, and can share in the profits. A total “Win Win” situation with profits reinvested in the communities we serve.
Ownership
Credit Unions are owned by their members. Credit Union members have a direct say in how the organisation operates. They elect the Board of Directors and Trustees, set the Rules within which the Credit Union operates and are free to suggest new products and services they want to see implemented. This means that the Credit Union must act in the interest of its members at all times and ensure that all of its operations work toward that end. It provides personal financial direction for its members by focusing on their personal banking needs, and this remains their number one priority.
What does a Credit Union provide?
Credit Unions are registered under the Friendly Societies and Credit Unions Act 1982. Whilst a Credit Union is not a registered bank, it provides a comprehensive range of banking and insurance products. Credit Unions are a trusted alternative, helping you manage your money, providing financial literacy and assisting their communities to access excellent banking products and services at reasonable prices. Credit Unions provide people from all walks of life an equal opportunity to improve their quality of life through access to fair and reasonable financial services. With attractive interest rates and competitive fees, you have the ability to save a lot more and borrow for less.
Who can join a Credit Union?
Anyone can join their local Credit Union. Traditionally each Credit Union operates under Membership Rules that define the group of members with a mutual interest. These members may live in the same community, work for the same employer, belong to the same profession, or attend the same church. Generally, persons within a member's family, by blood or marriage, may also join. In the case of NZCU Central, membership is open to ALL New Zealanders.
Is a Credit Union financially sound?
Being 100% New Zealand owned and operated, members funds are retained in New Zealand whilst credit facilities are advanced within specific credit and lending criteria. Like every financial services provider, Credit Unions are also subject to various risks and must manage these in a responsible manner. Under the Financial Markets Conduct Act 2013, Credit Unions are subject to a regulatory regime, where an independent trustee company acts as their prudential supervisor. This ensures that the Credit Union is actively monitored in the best interests if members.
Member deposits, which are Credit Union shares, are secured by a first ranking registered Trust Deed. A comprehensive Product Disclosure Statement is also available to any person wishing to better understand the risks inherent in a specific Credit Union. NZCU Central is no exception with its product disclosure statement available for scrutiny. Please see our page relating to the NZCU Product Disclosure Statement for further information.
