Remember the Farepak debacle in 2006 that devastated many people's plans for Christmas when their savings seemed to vanish into a black hole never to be seen again.

 

Don't fall into a similar trap. Join your local credit union; even if your local one happens not to be Red Kite it is still a good idea.

 

Credit Unions in the UK are required by law to be authorised and regulated by the Financial Services Authority and savings in them are covered by the Financial Services Compensation Scheme so are very safe.

 

The earlier you join and start saving regularly (but without any fixed commitment) the more savings you will accumulate and it is surprising how it can add up. And with a credit union you can become eligible to apply for a low cost loan to make up the shortfall for example to pay off the credit card bill. £200 would cost just £12 in interest if repaid over the year.

 

Moreover, unlike normal Christmas Clubs, your savings in the credit union should earn a dividend; for the year ended 30th September 2007 Red Kite Credit Union paid 2% on all shares held during that year. Dividend is earned daily so the earlier you save the more the shares will earn.

 

We can put savings for Christmas or other special events (holiday, wedding, new baby) into a separate credit union account in your name to reduce the temptation to spend them too soon. They will still earn dividend until withdrawn.

 

For more information please use the links given in the column to the right.

 

Red Kite Credit Union is registered with the Financial Services Authority as a trading name for Undeb Credyd y Barcud Coch Cyfyngedig.