London Mutual Credit Union aims to serve the whole community including children and young people. We have 2297 young saver accounts as of September 2016. The Young Saver Account (YSA) project gives children the experience of money matters, budgeting, saving and handling cash. They are actively involved and can gain experience in Mathematics and IT in conjunction with the National Curriculum. We want to educate our young people in how to make sound financial decisions throughout their lives.
A Young Saver must have an adult (Parent or Guardian) to act as Trustee to oversee the running of your account.
The Young Saver will need to prove identity and address. The Trustee must also provide proof of ID, unless they are a member of the credit union themselves (in which case we would have verified their ID when they became a member).
The Young Saver can use their birth certificate or passport to prove identity. For address proof, the Young Saver can use their trustee’s recent (less than 3 months old) bills such as a council tax demand or gas, electricity or water rates bill, recent bank, building society or credit card statement, council rent card, tenancy agreement or official letters from a UK Solicitor or Benefits Agency (or Pensions Service, JobCentre Plus, Child Benefit Agency etc).
If you do not have any of these documents, please let us know. There are many documents that can be used. We would like to help you open a credit union account.
When you save, you put some money aside over a period of time. People save so that they can use the money later - perhaps to buy or pay for something they want. Regular savings build up very quickly. The example below shows how savings can add up.
|50p per week||£1 per week||£5 per week|
|After 5 weeks||£2.50||£5||£25|
|After 10 weeks||£5||£10||£50|
|After 15 weeks||£7.50||£15||£75|
The purpose of the Young Saver account is to encourage young people to get into the habit of saving small but regular amounts and manage their money – therefore payments into Young Saver accounts are subject to a maximum limit of £100 per month.
Are Credit Unions different from banks
Although they provide some of the services that banks and building societies also provide, credit unions are different. Here are some of the ways in which credit unions are special.
The Common Bond
All the members of one credit union have to have something in common, such as where they live, work or attend school. This is called the common bond.
Not for profit
Credit unions exist only to serve their members. They do not charge their members a lot of money to use the credit union's services. When the credit union makes a profit, it gives the profit back to the members.
When you become a member of a credit union, you also become an owner of it. The credit union is also run by its members.
Credit union profits are shared by all its members.
If you have a Young Savers Account, all your family members who live at the same address as you can also join the credit union and open an account, as long as the address is still within our common bond at the time they are joining.
You do not have to close you account if you move out of Southwark, Lambeth, Camden or Westminster. Once you open a Young Savers Account and become a member of the credit union, you can be one for life!
This product has now been discontinued by the Government. You could however transfer your existing Child Trust Fund account into the London Mutual Credit Union. We will ask you to complete a transfer request form and we will contact your current Child Trust Fund provider to arrange the transfer.