# What is a Credit Union?

![](https://storage.googleapis.com/scvo-wordpress/sites/29/2024/11/8-cu-research-medium.png)

A credit union is a responsible alternative source of saving and borrowing, generally set up to serve people within a community or organisation. It’s regulated similarly to banks and building societies, with savings protected by the Financial Services Compensation Scheme up to £85,000 per individual.

## What are the benefits of a Credit Union?

A credit union is a not-for-profit financial cooperative. Unlike other financial providers, a credit union is run for the benefits of its members (your employees and volunteers), with no profits going to external shareholders.

With members’ interests at its heart, the credit union is better placed to offer more competitive rates and lower fees.

## How does a Credit Union work?

Since its inception in 1999, SCVO Credit Union has operated as a financial cooperative, pooling members' savings to create a shared financial resource that allows members to borrow when needed.

With over 3,200 individuals using our services, many of whom work for voluntary organisations across Scotland, the Credit Union has developed a strong financial resource that benefits the Scottish charity sector and its members.

## **Why SCVO Credit Union?**

![](https://storage.googleapis.com/scvo-wordpress/sites/29/2024/11/11-cu-engagement-medium.png)

SCVO Credit Union has a payroll agreement with around 40 of Scotland’s largest charities and many more.

As Scotland’s leading voluntary sector Credit Union, we empathise and fully understand the needs of our members and charity sector employers. The sector is full of employees and volunteers who go beyond what is required of them to care for others. It is a privilege for the SCVO Credit Union to provide a service for them, to help improve their financial well-being, and enable them to do what they do best.

SCVO Credit Union follows sound, safe business practices, lending responsibly and working within our financial means. We work with our members: decisions taken at the AGM help shape our policies, which in turn, enables us to provide a better service for members.

**[Find out how employers have benefited from being members of the SCVO Credit Union.](https://scvocreditunion.scot/employers/testimonials)**

## **Who can join?**

Any organisation that is a Scottish Registered Charity is able to offer the SCVO Credit Union workplace savings and borrowings plan to their employees and volunteers.

[Become a Payroll Partner](/employers/payroll-partners)

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## About SCVO Credit Union

SCVO (Scottish Council for Voluntary Organisations) is the national membership organisation for Scotland's voluntary sector.

Our role is to champion the role of voluntary organisations in Scotland and to support them to do work that has a positive impact.

SCVO supports members and the wider voluntary sector with all aspects of setting up and running a voluntary organisation. SCVO represents the needs and concerns of the voluntary sector to the Scottish government in Holyrood and UK government and Westminster. Through our learning and events programme SCVO offers training and development opportunities to the sector.

Members access an extensive membership benefits package including specialist, in-depth, 1-to-1 guidance from our Information Services team and from professional service partners.

Access to exclusive membership networks (including comms, employers, governance and policy) supports members to grow their connections, stay up to date, exchange ideas and views with peers, and learn through tailored learning opportunities.

SCVO members enjoy free access to Funding Scotland Premium to stay on top of funding opportunities to support their organisation’s financial resilience.

Discounts and savings on SCVO products and services (including our HR service, managed IT support, payroll service and events and training) and partner offers provide members with support to allow them to focus on delivering their organisation’s goals. Further SCVO products and services include [extensive digital support](https://scvo.scot/support/digital), a climate action resource [Growing Climate Confidence](https://climateconfident.scot), a voluntary sector publication [Third Force News](https://tfn.scot) and a voluntary sector jobs and recruitment service [Goodmoves](https://goodmoves.org).

For more information on SCVO membership, visit [SCVO membership](https://scvo.scot/membership)