Your Money is Safe

We’ve got you covered

We pride ourselves on putting our members first by ensuring our Credit Union complies with all regulations and are protected.

We are regulated by the Financial Services Compensation Scheme (FSCS). Alongside knowing your money is safe, we also make sure your money is covered. Every savings account with us comes with FREE Life Saving and Loan Protection.

Meaning that if the unthinkable was to happen, your nominated beneficiary will receive your savings PLUS the insured amount. Up to a maximum of £10,000 and any outstanding balance is paid off, so you can have peace of mind that your debt won’t be passed on.

How does the Life Saving Insurance work?

Insurance is based on the member's "Age at Deposit". (See table below) and any withdrawals of savings from your account may reduce the amount of insurance cover. (T&C’s Apply)



16yrs - 64yrs

100% (for every £1.00 saved, £1.00 of insurance is earned)

65yrs - 79yrs

25% (for every £1.00 saved, 0.25p of insurance is earned)

80 years and over

Deposits made on or after your 80th birthday do not qualify for insurance

When does Life Savings Insurance Not Apply?

Any new deposits are subject to a six month Pre-existing Condition Limitation. This means that should you die from a pre-existing medical condition, any deposits made in the last six months are not covered. Life Savings does not cover death due to Suicide (within 6 months of the date of deposit), Terrorism or War.

How does the Loan Protection Insurance Work?

This is a unique benefit to Credit Union members and would cost extra with most other institutions. Your Credit Union loan is insured at no extra cost to you. The loan could be completely cleared in the event of the member's death. The policy ensures that any debt will die with the debtor and no burden will pass on to their loved ones, up to a maximum of £10,000. The insurance covers loans taken out between the ages of 18yrs - 79yrs (T&C’s Apply)

When does loan Protection Not Apply?

Any new loan agreements are subject to a six month "Pre-existing Condition Limitation". this means that should you die as a result of a pre-existing medical condition within 6 months of taking out your loan (for which medical advice, consultation or treatment was received), loan Protection Insurance will not be applied. Loan Protection Insurance does not cover death due to Suicide (within 6 months of the loan date), terrorism or war.

If you have any questions regarding the life or loan insurance or if you simply want to get further information on what is covered - please contact us direct by using the Contact Us page above.


The Financial Services Compensation Scheme

We are covered by the Financial Services Compensation Scheme.

The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors, including most individuals and small businesses, are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the credit union, including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) please see the FSCS Booklet, ask at your local branch or refer to the FSCS website or call Freefone 0800 678 1100.


Credit union members also have the option of complaining to the Financial Ombudsman Service, if they don't get satisfaction from their credit union's internal complaints procedure.

Credit Union Regulation

The main Act of Parliament which governs how credit unions operate is the Credit Unions Act 1979.
Since July 2002 Merthyr Tydfil Borough Credit Union has been regulated by the Prudential Regulation Authority (registration number 213643), as are banks and building societies. The performance of each credit union is monitored by the Prudential Regulation Authority and The Financial Conduct Authority and senior staff and volunteers involved in the running of the Credit Union must be approved by them.

When joining the Credit Union members are asked to name a beneficiary or charity of their choice. You can name more than one and can change your beneficiary at any time by completing the Change of Details form.