What is a Credit Union?

2. What is a Credit Union? • A credit union is a financial co-operative owned and controlled by its members. • Credit Unions offer a friendly, convenient and secure place to save with access to low cost loans.

3. How safe is your money? • Credit unions are regulated by the Financial Services Authority (FSA), the same body that regulates banks and building societies. Credit unions are also fully insured against theft or fraud so you can be confident your money is safe. • Credit Unions are also covered by Financial Services Compensation Scheme (FSCS) just like banks and building societies. The FSCS is the compensation fund of last resort for customers of authorised financial services firms in the UK. It is there to protect consumers: if a firm becomes insolvent or ceases trading, currently protects deposits held up to a limit of £80,000.

4. Value for money? • You could save yourself a substantial amount of money by choosing a credit union loan. • Unlike the loans offered by many other lenders you will not be subject to any hidden charges and will benefit from built in life assurance on your savings and loans. • Credit unions do not seek to profit from their members, any surplus is either reinvested in the credit union or returned to members in the form of a dividend.

5. Credit Options • Credit Unions 26.8% Fixed (maximum) • Bank/Building Societies Vary • Credit Card 19.9% Variable • Store Card 28.9% Variable • Doorstep Lenders 272.2% Variable • Payday Loan 1737% Variable • Illegal Money Lenders Impossible to say • (Rates above are based on APR Representative)

6. Smart Money Credit Union & Benefits of Membership • Smart Money Credit Union provides straightforward, affordable financial services to people living in Caerphilly, Blaenau Gwent and Newport. • Establishing a regular savings pattern • Access to low cost loans • Free life insurance on loan and savings (subject to terms and conditions) • Access to our ‘white goods scheme’ • Alto pre-payment card accounts • Christmas Savings • Junior Savings • Child Trust Fund Accounts (3% annual interest) • Benefits Direct/Wages can also be paid directly to Smart Money account • Rent Accounts

7. Smart Money Credit Union? • Membership of ‘Smart Money’ will provide you with access to affordable credit. • Because credit unions exist to serve their members rather than profit from them they can offer low interest loans, with flexible repayment rates and no hidden charges. • Because credit unions often provide credit at better rates than other sources, they can help reduce the stress related to financial worries. • Smart Money is able to provide access to secure and regular saving through payroll deduction. Save for holidays, Christmas or home improvements and take advantage of the credit union’s built in life assurance*. We also provide an attractive return on savings.

8. Encourage younger members of your family to develop a savings habit - they can join the junior savers section (‘Smart Pennies’) of the credit union. • Be safe in the knowledge that by becoming a ‘Smart Money’ member you are supporting your local community and are joining a worldwide movement that puts people before profit • You can be assured of a professional service from ‘Smart Money’ at all times • Members don’t pay a transaction fee for saving with us, or borrowing money.

9. Smart Money Credit Union Loan Example • If you borrowed £500 over 52 weeks (a year) from a loan shark the interest rate you would have is 1,500% paying £29.21 each week back, having to pay back a total of £1,518.92. • If you borrowed the same amount from a doorstep lender the interest rate would be 180% paying £15.55 a week back, having to pay a total of £960.00+ • If you borrow £500 from your Credit Union the interest rate would be 26.8% on a reducing balance paying £10.84 a week, having to pay a total of £563.32.