1. What exactly is a credit union?
Fusion Credit Union is a cooperative community-based not-for-profit financial business that is run by and for members of the local community.

A helpful, impartial description is given by Martin Lewis, Radio 2′s Money Saving Expert.

2. How does it work?
Members deposit cash in the form of ‘shares’. Most of this money is lent out to other members at an interest rate of 1% per month, or less. Income is used to cover expenses. Any surplus after paying expenses may be distributed as dividends, or used for expansion of the business.

3. Is my money safe?
Yes. Credit unions are registered, authorized and supervised by the Financial Services Authority (FSA) which supervises all major financial businesses such as banks, building societies and insurance companies.

All key officers must be FSA approved persons. Quarterly and annual professionally audited returns must be submitted to the FSA.

Every credit union must be insured against fraud by their officers. Losses due to mis-management are covered by membership of the Financial Services Compensation Scheme (FSCS) which will repay 100% of the first £50,000 in savings. These are the same for banks and building societies.

4. Who can join?
Potential membership is defined by the ‘common bond’ shared by members.

For the Fusion Credit Union, members must live, work or volunteer in the Lichfield District Council area.

Full members must be 16 years of age but savings are accepted from junior savers under this age.

5. How do I join?
There is a membership fee of £2 and an initial savings deposit of £1 is required. Documentary evidence of identity and current address is required by law. To find out more, go to Become a Member.