St. Francis Credit Union has 2 types of Share Accounts – Regular Share and Special Share Accounts. Both types of Accounts are now subject to DIRT – see changes made in the Budget below:
Shares & Dividends
Every €1 saved is equivalent to 1 share in St. Francis Credit Union Limited. A minimum of €10 or 10 shares is needed to keep your St. Francis Credit Union account active. Each share is eligible for a dividend at the end of the year. Dividend rate declared at AGM is posted gross to members’ accounts and applicable to all Share Accounts, Dirt is separately shown on members’ accounts.
Returns made by St. Francis Credit Union does not include individual members’ details
The savings in St. Francis Credit Union Limited are used to make loans to other members. The interest received from loans and investments is used to pay operational expenses and to build up reserves. The remaining income may be returned to the members’ accounts after approval at the AGM which generally takes place in November/ December.
CREDIT UNION SAVINGS – TAXATION OF DIVIDEND (FINANCE BILL 2014)
Budget 2014 contains the following provisions regarding Deposit Interest Retention Tax (DIRT):
From 1st January 2014 all credit union share dividend and deposit interest paid to members will be subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT. The only members who can be exempt are:
- Members aged over 65 whose total income is less than the relevant limit, currently €18,000 for an individual and €36,000 for a married couple. For married couples, only one of the spouses needs to be over 65. To avail of this exemption, you must sign a self-declaration form DE1. This form is available in your credit union and is a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit.
- Members who are permanently incapacitated. Such members should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association. Credit unions have no role in approving the exemption in these cases.
If you do not complete the self-declaration form, the credit union will be obliged to deduct DIRT from your dividend or interest. You will then have to apply directly to the Revenue Commissioners for a refund of this DIRT (if you are eligible).
Nominating Your Savings
A Valuable, Free-to-Members Credit Union Services
A Nomination is a legally binding, written instruction that tells the Credit Union what to do with your money after your death.
The Nomination service is a very valuable to members in that it allows access to nominated funds by the nominee within a very short period of the death of the member. And while it will not relieve the loss suffered by the nominee, it serves to relieve potential cash-flow difficulties.
A Nomination is valid up to the amount of €23,000
- Any member ages 16 or over may make a nomination.
- The most recent nomination invalidates any previous nomination.
- A member may change his/her nomination whenever he or she likes.
- A nomination is not revocable or variable by the terms of your will or by a codicil to your will.
- Where your personal circumstances change (e.g. marriage, divorce or separation) you should review your nomination at that time.
- If you elect not to complete a nomination, the proceeds of your account will form part of your estate on your death and will be dealt with under the terms of your will, under the rules of intestacy if you make no will, or under the small payments provision.**
If amounts over €23,000 are held in an account, the balance would form part of the estate of the deceased member.
Download Nomination Form
** Small Payment Provision: where no nomination form has been filled and the amount in your account is under €15,000 in total (including insurance, etc.) the board of directors of the Credit Union may, without letters of administration or probate of any will, distribute your property in the credit union to such persons as appears to the board to be entitled by law to receive it.