LONDON–A new credit union named RetailCURe has been launched here for retail employees.
The first-of-its-kind CU in the U.K. is designed to encourage employees in the sector to save and borrow money at competitive rates.
Retail employees can deposit up to £15,000 on savings accounts and will receive 1% interest on instant access accounts, 2% interest on six-month accounts and 3% interest on one-year deposits.
Among the retailers participating in the CU at launch are John Lewis Partnership, Debenhams, Ryman, Iceland, new Look and Schuh, all of which have also provided financial backing for the CU.
RetailCURe will offer loans ranging from £500 to £5000. Terms will run from six-months to three-years at an interest rate of around 11%.
Among those who have been active in getting the new CU off the ground is Theo Paphitis. “There has never been a credit union for the retail industry before, so for the first time ever we can give our retail colleagues the toolset needed to live a responsible financial lifestyle. The economy as it stands at the moment does not offer a great incentive for people to save money,” Paphitis told Retail Week. “This is not just about loans or deposits – it’s about making it possible for people to manage their finances irrespective of what their financial status is.”
The new CU has already been approved by the U.K.’s regulators, the Prudential Regulatory Authority and the Financial Conduct Authority.