Credit union agrees bumper dividend payout in time for Xmas

Glasgow Credit Union is to give a total of £1.84 million to members – in time for Christmas.

It includes a 5% rebate on mortgage interest to 600 members, totalling £107,000 - a move thought to be an industry first.

On top of this there will be an 8% rebate on interest paid on unsecured loans, and a 1.5% dividend payout on members' easy access savings accounts.

This equates to £291,000 in interest rebate and £1.45m in dividend payout.

Receiving the interest rebate will be almost 12,000 members who have repaid loans to the credit union in the last financial year while the dividend will be paid to all 36,000 savers.

Credit unions in the UK are restricted by law to charging a maximum of 3% per month on loans (42.6% APR).

However, many, like Glasgow Credit Union, offer much lower rates to members.

June Walker, chief executive of Glasgow Credit Union, said: "In the 25 years since our credit union started, we have always rewarded our members with a market leading dividend on their easy access savings accounts.

"I am delighted that this year we are able to make history by also providing a UK first rebate on mortgage interest.

"Our 36,000 members all either live or work in the Glasgow area, so we hope that this £1.84m payout will be a welcome gift for members, and a boost for our city - just in time for Christmas."