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Bermuda Credit Union

We are a member-owned, not-for-profit, cooperative financial institution offering a full range of financial products and services.

As a cooperative institution, everyone that uses our services is both a member and part-owner of the organization and has a say in how the credit union operates. In fact, we are the only democratically-controlled financial institution in Bermuda. Members elect a volunteer board of directors to oversee the credit union. The General Manager/CEO reports to this board.

Because credit unions aren’t focused on making a profit, we’re able to offer better access to loans and higher earnings on savings. As an institution that is “Not for profit, not for charity, but for service”, we are focused on maximizing value for our members and our community. In contrast, banks are for-profit entities, run by paid board directors, with all profits benefitting bank shareholders.

FAQ

How do I qualify for membership?

Members of the Bermuda Industrial Union, together with their spouses and immediate members of their families
The Bermuda Industrial Union as an organization
Such body corporate owned by the Bermuda Industrial Union
The employees of the Credit Union

What do I need to open an account?

See membership page.

How do I qualify for a loan?

You need to be a member and saving consistently for at least six months. Contact the Credit Union for an interview date. On the date of the interview bring three copies of your latest pay-stubbs, a copy of one of your last utility bills, proof of the purpose of the loan. You are required to save a quarter of the amount you wish to borrow and place it in your collateral account at the Credit Union. Loan application forms may be completed on our website. Visit Consumer Credit Application on our Home Page.

What is Life Savings and Loan Protection Insurance?

If a member dies his/her beneficiary may receive up to three times amounts saved up to $4.000.00 and outstanding loan balances up to $20,000.00 are cleared. This benefit is made available to our members through CUNA Mutual Insurance Society, the insurance arm of 197 million Credit Union members worldwide. Conditions apply.

How can I get a loan after becoming a member?

Membership of at least six months is required before a member ordinarily qualifies for a loan in excess of the member’s savings.

What are the interest rates on loans and how is it calculated?

For regular loans that are above the member’s savings the interest rate is 1% per month on the reducing loan balance. For loans that are within the member’s share savings the interest rate is 0.58% per month on the reduced loan balance.

Do you provide debt consolidation loans?

Yes, a member may apply for loans to consolidate debt.

What other kinds of loans are provided?

The Credit Union lends for provident and productive purposes. A member may obtain a loan for educational purposes, medical purpose, to purchase a motor bike, motor car, to assist with business start-up, to assist with a current business, or other similar reasons.

What do I have to do to become a member?

To become a member, the KYC requirements such as a government-issued ID and a recent utility bill are required. After that a minimum of $57.00 is required to begin the account from which an entrance fee of $2.00 is taken.

How much interest can I earn on savings?

Certificates of deposits pay interest rates starting from 0.55% per annum to 2.05% over 5 years. Other savings e.g. the Gift To Myself earn an interest rate 0.50% per annum. This is credited to the account monthly. For the minors, there is the CU-CLUBBS. The interest rate is 0.75% per annum. The interest is also credited to the minor’s account monthly. The CU-CLUBBS account is for those 16 years and under

What is a Permanent Share?

It represents a member’s ownership of, or member’s equity in the Credit Union. This amount cannot be withdrawn while the person remains a member.

Why is it necessary for the Credit Union to implement Permanent Shares?

This gives the Credit Union another option for raising capital. It is also in keeping with the International Financial Reporting (Accounting) Standards that require equity to be treated in a certain way.

Since voluntary shares are not considered capital, permanent shares represent members’ equity in the Credit Union.

How is a Permanent Share different from voluntary shares?

The money in voluntary shares can be withdrawn, subject to a notice period if necessary. Permanent shares cannot be withdrawn; they can only be transferred when the member decides to give up membership.

How does the Credit Union benefit?

Permanent shares increase the capital of the Credit Union and allows it to undertake expansion and enhancement of services to the members.

Will I get dividends on my Permanent Shares?

Dividends may be paid on permanent shares if recommended by the Board of Directors and approved by members in an annual meeting.

Can I use my Permanent Shares as collateral?

Permanent shares are not intended to be used as collateral. Members have the option of using their voluntary shares to provide collateral for their loans.

Who and what will determine how much Permanent Shares members will need to have?

These decisions will be made by members in general meetings on the recommendation of the Board

Can Permanent Shares ever be withdrawn?

No. they cannot be withdrawn but they can be transferred to other members. In case of death or resignation as a member; the Credit Union may buy back the shares using a special fund called the share transfer fund.