London Credit Union voucher from Southwark

[katgod]

My son received this as part of a new scheme to encourage saving. It seems the account does not pay interest but that a dividend payment will be made each year. Is this normal for credit union accounts? What sort of rate of dividend? Do I just accept that credit unions are for the greater good and stop over analysing? If every 11-13 year old in the borough pays the voucher in presume that will be a chunky amount for the credit union to invest/lend etc?

[simonethebeaver]

It's normal for credit unions - they can only offer as much as they are able at the end of the year. Sometimes the dividend will beat interest rates, other times it may be very little.

Credit unions are fantastic social enterprises that benefit the community, and if this scheme encourages young people to use one rather than a high rate lender when they are older then it will have done a lot of good. The voucher is basically free money for our kids so we'll definitely be paying it in. They encourage saving and responsible borrowing.

[Goodliz]

Sounds great. Is this something that the children get when they turn 11? My son has a couple of months to go until his 11th birthday. Thanks.

[katgod]

We had a letter a month or so back from southwark explaining the scheme, then today the actual voucher. It is for all children resident in Southwark "aged 11 between 1 September 2013 and 31 August 2915". So that's everyone in year 6 or 7. Hopefully your letter will come later in the year Goodliz.