BY Ayanna Kirton, Staff Reporter 
Gladstone K. Pottinger, right, outgoing manager of Insurance Employees Co-operative Credit Union (IECCU) accepting a gift from Board President, Pauline Maxwell, in recognition of his service to the credit union. Mr. Pottinger, the founder of the credit union, was retiring after 23 years as treasurer and manager.
A CREDIT union is a financial institution organised to provide chequing and savings accounts, loans and other financial services to its members. It is both owned and controlled by its members, with each member having an equal vote and the opportunity to serve on the board of directors or other committees.
Technically, membership in a credit union is limited to people who share a common bond, such as the same employer, the same industry, the same community or parish, etc. However, in recent times membership rules have been greatly loosened.
Credit unions often offer very competitive rates on everything from savings accounts to auto and home loans. The greatest benefit to members has been the very competitive interest rates on loans. As a result, many members have been able to purchase items such as motor vehicles, homes, property, and furniture.
SEVERAL SERVICES
Credit unions provide several services other than loans and savings and chequing accounts. These include life insurance protection on loans and savings, general insurance coverage, health insurance, money transfer and credit cards. Some credit unions now provide automated teller machine services in an effort to make transactions quicker and more convenient.
According to the Jamaica Credit Union League, although there are hundreds of financial institutions to choose from, the success of the credit union is determined by its members and rarely do external factors impact on their performance. Also, credit unions do not conflict with each other because of their individual objectives.
Hopeton Morrison, general manager of St. Thomas Co-operative Credit Union, said members of a credit union can work together to ensure that the credit union meets their specific needs. The general manager also said credit unions have proven to be very safe places to invest. "Your first consideration before investing is the safety of your funds," he said. "Based on our recent FINSAC experience, the most important factor that drives investors is safety." He said the meltdown in the financial sector some five years ago left credit unions unscathed. "Not one member of a credit union has ever lost a cent in the 60 years that credit unions have been in existence."
Mr. Morrison said saving from an early age could begin the wealth creation process ensuring a financially secure future. "Do not underestimate the power of putting your child in wealth creation mode from infancy," he advised. "One of the good things about the so- called American Dream is that children are socialised into thrift literally at birth. If parents give a child a weekly allowance and encourage their children without forcing them to save some of their allowance, good savings habits will be established."
Nearly all credit unions have children's accounts for this purpose, for example, City of Kingston Co-operative Credit Union's (COK) CARES, a savings plan designed specifically for children.
GSB Co-operative Credit Union's deputy general manager, Pingue Smith, gives several reasons why joining a credit union is the best bet for any investor:
Becoming a member of a credit union helps to improve both your financial and social status.
A credit union member automatically becomes a shareholder or part owner of the institution.
Credit unions offer a wide range of products and services. For example, credit unions offer health insurance, standing order payment, various savings plans, and family indemnity plans. A family indemnity plan helps to cover funeral expenses and can cover as many as six family members and up to $150,000 in funeral expenses.
Interest rates on loans issued by GSB Co-operative Credit Union are very competitive (14-24 per cent) and interest on savings range from 12.5-16 per cent.
Both loans and savings are insured.
Facilities for mortgages are also available.
Now that you know the benefits of joining a credit union, Bankrate.com writer, Dana Dratch gives some suggestions on how to find a credit union quickly and easily.
Start with the obvious: Your workplace. Many employers either have their own credit unions or have joined one. Many professions or professional organisations, such as unions or trade associations, also will have credit unions. So while Bob's Electric Repair might not have a credit union, the Electrical Workers Local might.
Go to a church. Or a synagogue. Or a mosque. Some houses of worship have credit unions. If you're a member of a religious community, you could be eligible. Also try the local chamber of commerce and civic clubs.
Let your fingers do the walking. Another good source is the Yellow Pages. Many areas have their own community credit unions based on geographic location, so start with the name of your community. And don't count yourself out if you don't live in a particular area with a credit union. In some cases, it's enough to work or go to school there.
Ask Mom. Since many credit unions will let you in if you are related to someone who is eligible,talk to your parents, your spouse, siblings, in-laws, aunts and uncles. Even if you haven't been near a classroom since graduation, having a brother who teaches might be your passport into the local teachers' credit union. Rules on relatives vary some credit unions limit membership to immediate family, so be sure to ask.
* Use the Internet to find information about credit unions in Jamaica and the services they offer. The Jamaica Co-operative Credit Union League Web site is a good source for credit union locations across the island: www.jccul.com.
* Make a list of the things that are important to you and see how your credit unions stack up. Just to be fair, throw a couple of banks on the list, too.
WHAT TO LOOK FOR?
* Convenience, rates products and services. Start with convenience. Do you need locations close to home, so that you can hit the bank before work or on weekends, or do you want a branch near work you can visit on your lunch hour? Can you make do with one location or do you need a network of ATMs?
* Look at the products and services you use now. Many banks charge a monthly fee for a chequing account or withdrawals from their ATMs.
* What is the cost of doing business at the credit union?
* Can they offer credit cards? Car loans?
* Compare rates on their savings accounts and credit cards.
* Remember to weigh in anticipated future uses. Planning on buying a home or refinancing the one you've got? Ask about their mortgage rates.
There are currently 53 credit unions in Jamaica with a total membership of 676,721 at the end of 2002, according to the Jamaica Co-operative Credit Union League. Their employees can help you find out which credit unions you might be able to join and which one best suits your needs.
