When you open an account with Mullingar Credit Union you can save your money in either a share balance or a CU Cash balance. You can lodge and withdraw money from your account as you wish unless your savings are pledged against borrowings. Savings in your share balance in excess of that pledged against borrowings are withdrawable. Savings held in the CU Cash balance is not considered pledged against loans so it provides flexibility where there is a loan on the account.
Dividends and Deposit Interest
Dividends (similar to interest on a deposit account) may be paid on share accounts at the end of the year. The amount of dividend paid will depend upon the level of savings in the account throughout the Credit Union financial year and the rate of dividend declared by the members of the Credit Union at its Annual General Meeting.
Deposit interest may be paid on CU Cash balance. The interest is paid on a monthly basis at a rate set by the Board of Directors.
- Deposit interest retention tax (DIRT) is automatically deducted from dividend and interest earned on savings in the Credit Union.
- The liability to tax applies only to dividends and interest received from the Credit Union and not on actual savings.
- DIRT is applicable to all accounts including those of children. There are however certain limited exemptions where the payment of dividend and interest can be paid without the deduction of DIRT. This applies:
- In the case of a member who is over the age of 65 (or whose spouse is over the age of 65) and whose gross income is less than the relevant annual exemption limit. An application must be made to the Credit Union using a Revenue declaration form (DE1).
- In the case where a member or their spouse is permanently incapacitated. You must apply directly to the Revenue Commissioners who, on approval, will notify the Credit Union.