The maximum amount that any Member Cara Credit Union can have is a maximum of €40,000.

The limit for a minor is €10,000 maximum.

Example: Member A has €30,000 in a sole account and €30,000 in a joint account,

This means that Member A has a total balance of €45,000 i.e. €30,000 (100% of the sole account balances) plus €15,00 (50% of the joint account balance).

Therefore, unfortunately Member A will have to reduce their overall holding by €5,000 with Cara Credit Union, to ensure that the €40,000 limit is adhered to.

A limit on savings is not a decision your Board of Directors and Executive have taken lightly, but is necessary given the current economic environment.

All affected members have been notified by post and by telephone call.

Why are we making these changes?

The business model of any credit union, including ours, is a simple one. We accept savings from our members to lend out to other members. Any funds not lent out to members are placed in investments. With the current rate of return on investments very low, many financial institutions are charging us to hold your savings on short term deposits.

In addition, the rate of savings has nearly doubled this year and as the rate of savings increase, we have a regulatory requirement to also increase our reserves. Regulatory requirement is 10% of total assets so for every additional €1m in savings, we must allocate €100,000 from our surplus/profits, to our regulatory reserve. Cara Credit Union is very well capitalised, far more than the regulatory requirements and is making this change to maintain that strength.

What does this mean to you? 

We apologise for the inconvenience this may cause, as we ask members with over €40,000 in their account (s) to reduce their balance(s) below €40,000. This limit is calculated to include all balances in your sole name (savings, access, e-stamp and current) and to include 50% of any joint account balances. When calculating how much to withdraw, please consider any frequent electronic payments that may cause your account to go over €40,000.

If you have frequent regular payments coming into your account with Cara Credit Union, you need to either (a) arrange that your funds are credited to another account or (b) withdraw a lump sum to allow your payments to continue being received by Cara Credit Union. We advise that you seek professional advice on how best to invest any surplus money, Irish Life Financial Services have a team of financial advisers ready to help get you started with your financial planning. Why not take the first steps in Financial Planning with Irish Life Financial Services by clicking here 

If payments are received which would increase a members share balance over €40,000,  Cara Credit Union will have no option but to return these payments.

The Board of Directors are reviewing this saving cap on a monthly basis and we are seeking your support to ensure the continued financial strength of Cara Credit Union. We have aligned ourselves with other similar sized credit unions to try and find a better solution other than implementing a savings cap, however, they will be no solution in the short to medium term.

To withdraw funds please sign up for online banking here and withdraw funds online. You may also visit us with your photo Identification (current Drivers licence or Passport) and withdraw by cheque or electronic funds transfer if you bring the IBAN and BIC of another financial institution.