Finance

They were set up partly as an ethical response to pay day loans and doorstep lending which come with high interest rates. They are an alternative to banks and building societies in that they are set up by members who have something in common (live in the area or work for the same employer or in same profession, e.g., Police or the NHS). Credit Unions provide a financial community where members benefit as there is no profit for third-party shareholders. All Credit Unions offer some form of savings account with the difference being that a Credit Union often pay a dividend (dependent on how well it has done) rather than a confirmed interest rate. Most credit unions offer loans for smaller amounts, under £3,000.