What is a credit union?

A Credit Union is a not-for-profit financial cooperative owned by its members. They provide traditional banking services, such as accepting deposits and making loans, but unlike Banks, they return profits to their members in the form of lower interest rates, loan interest rebates and dividends. Credit Unions focus on providing a safe place to save and borrow at reasonable rates, often offering more favourable terms than traditional Banks.

Salford Credit Union has been providing services for over 30 years, when a group of volunteers first set up Mandley Park Savings & Loans.

We’re a social enterprise and help members save in at least 7 ways:

• First- all members get a Savings Account. Fully regulated and safe, and available from birth. Many members tell us they had no savings before opening their Credit Union account
• Second- we keep encouraging the Savings habit– asking members to keep saving even while paying back loans
• Third- we can often provide Loans to people who might otherwise have to use high cost lenders- whose interest rates can be ten times as high as ours. Credit Union interest rates are capped by government.
• Fourth-we help keep money in people’s pockets. We estimate we save members around £1m/year by providing our low cost loans- compared to having to use doorstep lenders
• Fifth- this helps our local economy, because people have more money to spend on local goods and services.
• Sixth- if we make enough surplus it is shared as a dividend to members
• Seventh- we work with other local partners, including Salford City Council, local housing providers and local voluntary and community organisations. We work on shared objectives, particularly in relation to Anti Poverty, financial resilience and economic prosperity so that people can enjoy a good life in Salford and the wider area.