A leading Welsh Community Bank is rewarding its Members by tripling its dividend for savers.
Smart Money Cymru Community Bank (SMCCB) has declared a 0.75% dividend for 2021 (up from 0.25% the previous year) – one of the market-leading interest rates on offer to savers in the UK.
CEO Mark White said the dividend was the result of the Community Bank’s strong performance in the last year. “We have consistently paid a good dividend to savers in the last 20 years, and we want to thank people for their support and confidence in us,” he said.
“We spent Lockdown refocussing the business and thinking about what our customers wanted. This was time well-spent and we are moving forward on all fronts with increased membership, more lending and higher income.
“This is partly because we are providing a local service which is embedded in, and committed to the local community while some High Street banks are closing their doors.”
The Credit Union rebranded as a Community Bank this year, to better reflect its role and the services it offers from three branches in Caerphilly, Blackwood and Tredegar. The plan is now to enhance services with a new software platform, new debit cards, improved digital account access, better control over payments and faster loan decisions.
Membership of SMCCB has risen to almost 8000 – an increase of 7.46% compared to a fall in Credit Union Membership of 7.2% in Wales in the same period. Lending is also up by a huge 45.28% over the year, compared with credit unions in Wales whose overall lending declined slightly.
Saving with SMCCB is an attractive prospect for many reasons, explained Mr White. In the first place, people know their savings are safe, which is especially important in these turbulent times. “The security of our savers’ money is guaranteed up to £85,000 by the UK-Government backed Financial Services Compensation Scheme, FSCS.”
Another important benefit is that savings come with automatic life cover. “if you save regularly with us and leave those savings with us, we’ll double the amount up to a maximum of £5000 on the death of a Member, which means that your loved ones can get extra benefit to help with funeral costs, or an inheritance package.
“Our loans are also covered if a Member passes away with a loan outstanding too.”
Saving with a local institution, rather than a national organisation with a distant headquarters which exists to reward shareholders, is a benefit to the local area and community.
“An essential part of the role of a not-for-profit financial institution is to strengthen and reinforce the local economy. Lending to our members means that funds tend to be spent locally , and so wealth is safeguarded within the area, instead of flowing out.
“As a not-for-profit institution, owner by its members, we endorse the concept of the circular economy for building businesses and supporting local employers,” said Mr White.
