Savings

Saving from your benefits

At London Mutual Credit Union, our loans are designed with your future in mind. Every repayment is also a step towards building your own savings—helping you move from borrowing to lasting financial security.

Why save regularly?

Even a few pounds each week can make a big difference. Having money put aside means:
  • Less time stressing about the unexpected

  • A greater feeling of being in control

  • Control over your future plans and goals

  • Treating yourself and others without feeling guilty

Ways to save

Open a membership account

Money goes directly into your savings each time benefits are paid. Build a cushion week by week.

Apply for a loan and save as you repay

If you borrow from us, a portion of your benefits goes towards repaying the loan — and a little extra is saved for you at the same time. By the time your loan is cleared, you’ll have savings built up too.

How benefits deduction works

Pay benefits into your account

We'll ask you to contact HMRC or DWP to ask them to pay your benefits into your credit union account.

Loan repayments deducted

We'll automatically deduct any agreed loan repayments or payments into your savings.

You keep the rest

The rest of your benefits are paid into your bank account as usual.

Access to your savings

Savings are held against your loan, and are available to withdraw once your loan is repaid.

Benefits-deducted borrowing options

Booster loan

Borrow £600-£1,200
Max 42.58% (3% a month)

Affordable borrowing for all, including those who are unemployed, retired or on Universal Credit.

Child benefit loan

Get a £600-£1,200 revolving loan facility
Max 42.58% (3% a month)

Available to anyone with children under 16 receiving Child Benefit. Get a revolving loan facility when you pay it into your credit union account.

Saver loan

Borrow up to your total savings
4.5% APR

Borrow at our lowest rate against any savings currently held in your credit union account.

Good to know

Got questions? We've answered some common ones to help you get started. If you need more information, our Help Centre is just a click away.
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  • What is benefits deduction saving?

    Benefits deduction lets you save or repay loans directly from your benefit or pension payments. The money is taken before it reaches your bank account, so contributions are automatic and hassle-free.

  • What benefits can I use for deduction?

    You can save or repay from any benefit which it’s possible to have paid into your credit union account. This includes Universal Credit, Child Benefit, and many other types of payments which you may receive on a regular basis from the Department for Work & Pensions or HMRC.

  • How do I set it up?

    If you join and apply for a loan and your main income source is benefits, we’ll set you up with a credit union e-account, which comes with its own account number and sort code.

    We’ll then ask you to contact HMRC (or DWP) to arrange for your benefits to be paid into this account. You can do this directly via their app or over the phone by calling them.

  • Can I save and repay my loan at the same time?

    Yes. When your benefit payment arrives, we’ll first take your agreed loan repayment and savings contribution. The remaining balance is yours to withdraw or keep in savings.

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