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Introducing Community Banks

8 September 2023

Did you know that Community Banks (also known as Credit Unions) are a great way to save and borrow while helping out the local community?

As a not for profit organisation and fully registered with the Financial Conduct Authority, Community Banks can offer people who may not be able to access mainstream lending a safe and affordable way to borrow with interest rates much lower than those of high-cost or illegal lenders.

Saving with a Community Bank can help you to build a savings pot and also helps the local community. Money saved with a Community Bank is used to lend in a co-operative manner, supporting local residents and keeping money within the local community. Don’t worry though as every penny you save is fully protected by the Financial Services Compensation Scheme up to £85,000 meaning that if the Community Bank was to collapse, your money would be fully refunded to you.

Five Community Banks and Credit Unions operate in Derbyshire and each come with their own joining criteria, also known as a ‘common bond’. This means that you generally need to live, work or study within a geographical location to be eligible to join.

Find out more about the Community Banks and Credit Unions in Derbyshire, their common bond areas and how to save directly from your salary.