Shares
Every €1 saved is a share whether held in a regular, special, medium or long term account and is insured under the Life Savings Protection Scheme. Shares in any of these accounts can be used as loan collateral.
Shares that are not pledged as security for a loan are withdrawable. However, as far as possible, members are encouraged to keep their savings intact, thus ensuring that:
- They continue to earn a bonus shares / dividend
- They continue to benefit from the Life Savings Insurance protection
- The member can maintain credit worthiness and capacity to borrow
Members are encouraged to take out loans rather than withdraw shares for the above reasons. A member who wishes to withdraw shares needs to give notice to the Credit Committee before they meet on a Thursday evening. A minimum of €5 must be held in a share account to keep it open.
Regular Share account
Income tax payable on annual bonus shares / dividend is solely and absolutely the member’s responsibility.
Special Share account
On the annual bonus shares / dividend paid to these accounts, income tax at a rate of 23% is deducted by the Credit Union and paid to the Revenue Commissioner on an annual basis. This totally covers the member’s tax liability for this income.
Note: You may only have either a ‘regular’ or a ‘special’ share account. Contact the office if you wish to change from a regular to special account.
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Medium Term account
A once off payment, which may be from shares, is required to open a ‘three year’ account. Bonus shares / dividend to the value of €480 are ‘tax free’ on funds left in the account for three years. 23% tax applies over this amount.
Long Term Account
A once off payment, which may be from shares, is required to open a five year account. Once opened for five years, the tax free amount which can be earned here is €635 on annual bonus shares / dividend. 23% tax applies over this amount.
Contact the office if you wish to open a term account
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