Why save with a credit union?
Saving always makes sense but with St. Paul’s Garda Credit Union it’s even better because as a member you’re an owner with your say in how the credit union is run. Any profit the credit union makes is invested in services or returned to you the member. What’s more, by saving in your credit union you know that your money is being retained to grant loans to other members – people like you.
How safe are my savings?
Credit unions are regulated by the Central Bank of Ireland- the same body that monitors banks and building societies. Credit unions are also bound by acts of the Oireachtas and are fully insured against theft and fraud so you can be confident that your savings are secure. Your Savings are covered by the Irish League of Credit Unions Savings Protection Scheme and also by the Government Deposit Guarantee Scheme.
Life Savings insurance
Life Savings insurance pays a benefit (to a maximum of €12,700) on the amount of savings made during a member’s lifetime. The percentage of insurance cover is calculated based on the amount of funds lodged within specific age parameters up to the age of 70 years, and which remain in the account until the demise of the member.
Withdrawal of savings may have a negative impact on Life Savings insurance as the claim is based on the lowest share(savings) amount after the age of 55 years.
St Paul’s Garda Credit Union Limited offer above cover (subject to terms & conditions as laid down by our insurer) to at no direct charge to our members and is paid as an operational expense by the Credit Union.
Can I have easy access to my savings?
You can withdraw your savings whenever you want provided that they are not pledged as security on a loan. Every member is however encouraged to continue saving as this means they will continue to benefit from life savings insurance and will carry on earning a dividend.
Dirt and your shares /savings in St Paul’s?
Your shares/savings in St Paul’s are treated as being a Special Share Account which means DIRT is applied and deducted at the prevailing rate (currently 33%). This satisfies your liability to Revenue in respect of any Dividend paid to your account in St Paul’s Garda Credit Union Limited.
You may opt by written instruction to St Paul’s to convert to a Regular Share account which means DIRT will not be deducted. It is your responsibility to declare the dividend in your annual tax return to the Revenue Commissioner and Income Tax is then paid on the dividend at the taxpayer’s marginal or top rate of tax. There is no reporting requirement for the Credit Union however Revenue has the right to audit.
If you have no tax liability on your income a Regular Share account may be a better option for you. It is best to obtain advice in this respect before deciding as this information does not purport to be taxation advice.
St Paul’s Garda Credit Union Limited offers you the opportunity to avail of Special Term Share Accounts.
What are Special Term Share Accounts? Well, there are two types, (1) A Medium Term Account and (2) A Long Term Share Account. “Medium Term Share Account”, means an account opened by a member with the Credit Union on terms under which the member has agreed a single lump sum lodgment to the account to be held for a period of not less than 3 years. You can earn an annual dividend on that money up to €480 without having to pay DIRT
“Long Term Share Account”, means an account opened by a member with the Credit Union on terms under which the member has agreed a single lump sum lodgment to the account to be held for a period of not less than 5 years. You can earn an annual dividend on that money up to €635 without having to pay DIRT.
Interested? Click here for Terms/Conditions and downloadable form.
Can I be exempt from DIRT ?
You can claim an exemption from the deduction of DIRT if,
You, your Spouse or Civil Partner are aged 65 or over during the year, and your total income (this is essentially your gross income from all sources, e.g. old age pension, deposit interest etc.) for the Tax Year does not exceed the following amounts:
Single, Widowed or Surviving Civil Partner €18,000
Married Couple or Civil Partners (combined income) €36,000
These exemption limits are increased by €575 for each of the first two dependent children and by €830 for each subsequent dependent child. For further information and to obtain application form DE1 go to www.revenue.ie