Credit unions

A credit union is a financial co-operative that is owned by its members. The members create the credit union and pool their money to run it as a mutually-beneficial financial community.

Credit unions offer similar services to banks and building societies – like deposits, savings and loans – but, unlike banks, offer non-profit services to their members.

If your credit union goes out of business and is unable to pay back your savings, FSCS will step in to ensure you get your money back. We will automatically pay you compensation - you don’t need to do anything.

Credit union compensation limits

 

£85,000 per person per firm. £170,000 for joint accounts.
£1 million for certain life events up to six months from when the amount was first deposited. Unlimited for personal injury claims.
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You don’t need to do anything – FSCS will compensate you automatically.

How long will the credit union claim process take?

7 days

FSCS will aim to pay compensation in the majority of cases within 7 days of a bank or building society failing. Any remaining claims, which are likely to be more complex, will be paid within 20 working days.