Dividend vs Interest

Posted on Mar 20, 2025

Credit unions reward members with an annual dividend* on savings, setting us apart from banks that typically offer monthly interest. While headline interest rates from big banks may seem attractive, they often come with conditions that make them less straightforward than they appear.

At Voyager Alliance, our focus is on fair savings options with real value. Here are a few important things to keep in mind before opting for high-interest rate accounts being advertised. Many of the accounts on offer only apply:

• If you have your main current account with the bank or building society.
• If you pay in a minimum balance each month – this may be you monthly pay or an amount that is often a lot of money to most of us.
• If you agree to have limited access to your savings.
• You may only get the higher interest rate on the first  £1,000 or so of savings. Sometimes any savings above £1,000 get little or no interest at all!
• the advertised rate is not guaranteed and may go down at any time. You’re in the banks hands!
• You may not be able to access your savings even in an emergency.

Why credit unions are great…

At Voyager Alliance, our profits are reinvested back into the business and distributed back to members. Our dividend rates may not always match the higher rates of interest promised by our competitors but credit unions are great.

• Dividends paid on savings account balances. Our Christmas Savings Account also pays an even higher dividend to help you get ready for the most expensive time of the year!
• Any profits the credit union makes are shared with you. We reinvest into our teams, technology and our members. Members are at the hearts of everything we do.
• We are a financial co-operative so your savings provide you with financial security whilst also helping others escape loan sharks, payday loans and never-ending credit card debt.
• By saving with Voyager Alliance, if you need to borrow  in the future, you have access to ethical and affordable loans which often have much lower repayments and interest rates than your banks credit card!
• Credit unions have no external shareholders, and members are at the heart of everything we do.
• Our Free Life Cover provides essential support for families during the early stages of bereavement, offering peace of mind that if the worst were to happen, your loved ones (or beneficiary) would receive up to £5,000. While some credit unions may not always offer the highest interest rates compared to big banks, we bring value in other ways. Our members are at the heart of everything we do, and supporting you and your family is our top priority.