CREDIT union bosses in Glasgow are today celebrating a record breaking early Christmas.

They've paid out a whopping £1.5million to savers who plan to spend the money on swank gifts, holidays in the sun and trips to see loved ones who live elsewhere in the UK.

The cash bonanza came from the Scotwest Credit Union. It's seven years since the organisation launched its Christmas account for savers and the latest pay out of £1,485,281 is the biggest yet.

The Christmas account was launched in 2007 to help savers plan for the festive season. More than 2000 savers have paid into the ­account during the year and each have received an average £675 in spending money. Savings were topped up with a 1.42% dividend.

The city centre credit ­union says its divi beat the interest rates on offer from all of the High Street banks while its members had the added bonus of being protected by the Financial Services Compensations Scheme.

Scotwest's chief executive Kenny MacLeod said: "We are delighted to be able to help our members save sensibly for the most expensive time of the year.

"Rather than get into debt or put a strain on their festive finances, our members save throughout the year and get their savings paid out, plus dividend, in time for the Christmas shopping."

The Christmas account launches each year in November but anyone can join at any time so long as they become a Scotwest member.

Cash sums are paid out around six weeks before the official start of the Festive season.

Scotwest chiefs are delighted they are making hundreds of savers happy in the run up to Christmas. They point out that most of the windfall is being splashed out on holidays, presents and the cost of travelling to see family members and friends.

But they stress that the credit union should be seen by members as a long term solution to fulfil the needs of savers and borrowers without the astronomical high costs normally associated with payday loans.

And the credit union can also come to the rescue of those who haven't bothered to save for Christmas with short term cash loans. Scotwest claims to offer an ethical alternative to payday loans.

They can authorise an express same-day loan of £500 so long as the borrower agrees to sign up to become a regular saver with the credit union and is employed with one of almost 90 "select employers" across Glasgow and the West of Scotland.

gordon.thomson@ eveningtimes.co.uk