The development of credit unions is a key area for Unity and we have been actively promoting the setting up of credit unions for a number of years.

Unity took the innovative step of demonstrating its commitment to credit unions by launching a special deposit account - the Credit Union Development Fund - where credit unions can aid the growth of the movement whilst earning interest on their own funds. 

The aim of the Fund is to assist both new and existing credit unions with their promotional and marketing costs.

How does it work?

Credit unions are encouraged to deposit surplus monies into a high interest bearing deposit account with Unity. This is an instant access account and pays interest twice yearly. 

In addition to the interest you earn, Unity will pay an amount equivalent to 0.125% of the total combined balances into a separate grant fund.

Credit unions can then apply for a grant to assist with their marketing and publicity costs.

Changes for 2012

As bankers to over 40% of the UK credit union movement, we're very aware of the effect that increasing economic pressures are having on many of you.

One way that we can help is through the grants that we disburse from the Credit Union Development Fund. In 2011, the fund paid out over £20,000 to help UK credit unions.

We've solicited feedback and views from many within the sector, with a view to improving the channelling of money paid out to credit unions from the fund. We have listened to these views and come up with a fairly radical range of changes, which we think hellp to make a bigger impact.

Major changes

• We've made the application process much easier - it will be via an online form. Applications will be accepted from 1 January 2012 to 17 February 2012. No further applications will be accepted for funding in 2012.

• The applications will be anonymously assessed against our new criteria by an independent panel comprising credit union representatives, sector experts, financial analysts and a Bank representative.

• We will be announcing/celebrating the successful applicants at our National Credit Union Awards ceremony on 18 April 2012.

• As a general principle, to ensure that fund monies have the most significant impact, the grants will be aimed at smaller (<4,000 members) credit unions, with grants of between £3,000 - £5,000 each.

• We think these changes will make a marked improvement, but because these changes represent a substantial shift from the previous arrangements, we'll be reviewing the panel membership and process for effectiveness and amendment at the end of 2012.

Would you like to apply?

Once you have taken a look at the assessment and funding criteria information, you can submit your application by completing the application form.