THOUSANDS of savers and borrowers are to share a multi-million pound windfall in the run-up to Christmas.

Glasgow Credit Union is paying out a record £2.4m in dividends and interest rebates to more than 42,000 members after another successful year.

Confirmation comes just weeks after Evening Times readers voted it Glasgow's Favourite Business.

It is also the largest and most successful credit union in the UK.

Almost £2.1m in dividends will be shared among more than 32,000 savers while another £306,214 of interest rebates is being paid out to more than 10,000 borrowers.

The cash bonanza came as a surprise to one saver.

Delighted city centre office worker Linda Duffy, 56, said: "I thought I'd get around £20 return on my savings but when I checked my balance on-line I was delighted to find a £160 payout in my account.

The 56-year-old Glasgow granny of two added: "I had to call the credit union to make sure it wasn't an error. It will come in really handy when I start my Christmas shopping for the grand kids this weekend."

June Walker, chief executive of Glasgow Credit Union, said: "We're thrilled to be able to deliver a share of our surplus to both our savers and our borrowers, particularly in such a challenging financial marketplace.

"Our business model ensures that our members have a safe and rewarding place to save and access to flexible and affordable borrowing.

"We hope this distribution of surplus to members helps them in the lead up to Christmas."

She added: "This record payout comes at the tail end of a fantastic year for the credit union and our members, having been voted Glasgow's Favourite Business by readers of the Evening Times and crowned Scotland's Best Business at the ASB Awards.

"We've launched new loans and mortgage products in response to members' needs and we're now in the position where one in every 20 Glaswegians is a member.

"It's a rewarding feeling to know that we help the people of Glasgow manage their finances, provide a great return on savings and deliver low cost loans when they need them."

The credit union is based in Morrison Street, Tradeston, and uses money lodged by savers as loans for other members.

The interest charged on loans is then used to improve services and to reward savers with a dividend.

The average pay-out will be £76 depending on savings and loan balances. Payments will be made before Christmas.