43 Years of First Rate Credit Union

From a Cash Tin in a Hangar to a Lifeline for Thousands: 43 Years of First Rate Credit Union

A Nostalgic Look Back at 1982
It’s hard to believe that 43 years ago, a modest idea took root in the Warton aerodrome hangars of BAE Systems. In June 1982, two visionary colleagues – John Geraghty and Les Walker (pictured) gathered with a simple mission: help their coworkers save and borrow money more easily. Back then, there was no fancy offices or online banking. In fact, the very first transactions took place via a cash tin passed around the hangar – the credit union’s volunteers literally collected coins in a tin from anyone willing to save a few pounds for a rainy day. With those humble coins, the fledgling credit union issued its first-ever loan of £250 to a member for a family holiday (quite a sum for a getaway in 1982!).

In those early days, the operation was truly grassroots and full of improvisation. Volunteers would even follow the workplace football-pools collector around the shop floor to sign up new savers, then sometimes playfully hide when too many people asked for loans (because the demand often exceeded the tiny funds available). Business was conducted in living rooms after hours, with dedicated BAE employees turning their lounges into makeshift credit union offices on evenings and weekends. This was a labour of love – colleagues helping colleagues – born from a genuine need. At a time of sky-high interest rates and limited access to small loans, John and Les wanted to create a safe, community-based financial haven for their peers. The reason for starting was simple: to support the financial wellbeing of the BAE family, ensuring no one had to resort to loan sharks or struggle alone. They instilled the ethos of “people helping people” from day one, laying a foundation of trust and mutual support that would define First Rate Credit Union for decades to come.

Growing Through the Decades
From that modest beginning, First Rate Credit Union steadily grew and evolved alongside BAE Systems. It was among the first employee-based credit unions in the UK, formed just three years after the landmark Credit Unions Act of 1979 made such member-owned cooperatives possible. The 1980s and 1990s saw the credit union gradually expand its reach. What began as a small savings circle at Warton gained momentum as more employees heard about the benefits of payroll deduction savings and affordable loans. By the time First Rate celebrated its 21st birthday in 2003, it had 700 members and had expanded its “common bond” to include all BAE Systems employees across Britain (no longer just those at a single site). This widening of membership reflected the credit union’s growing reputation and the widespread need for financial services tailored to BAE staff.

Milestones Over the Years
Looking back over 43 years, there are many major milestones that mark First Rate Credit Union’s journey from a tiny workplace cooperative to a nationwide financial partner for BAE Systems employees. Here are some of the key highlights in its evolution:

• 1982 – The Beginning: Founded in June 1982 by BAE colleagues John Geraghty and Les Walker in the Warton hangars. Operated informally with coin collections and volunteer-run ledgers, issuing the first loan (£250 for a holiday) that same year.

• 1980s – Early Growth: Among the first employee credit unions in Britain. Grew slowly through word of mouth; volunteers met in living rooms to manage accounts. Built a partnership with BAE for support and space as membership rose.

• 2003 – Coming of Age: Celebrated 21 years with 700 members and a new expanded common bond allowing any BAE Systems UK employee to join. By this point, had lent over £2 million cumulatively to help members buy cars, take holidays, and handle emergencies.

• 2012 – 30th Anniversary: Opened a new on-site branch at Samlesbury and marked 30 years of service. Membership grew past 1,400, with over £3 million in savings and loans under management. Members enjoyed healthy annual dividends (around 4.25% in the early 2010s) as the credit union continued to prosper.

• 2016 – Reaching Barrow: Formed a ground-breaking partnership to open a branch in Barrow-in-Furness, extending services to more BAE employees in the maritime division.

• 2020 – Supporting Members in Crisis: During the COVID-19 pandemic, ensured continuity of service despite office closures. £1.5 million was paid out to members in need through savings withdrawals and loans, helping many through uncertain times. Demonstrated financial strength and care for members’ welfare in a critical period.

• 2022 – 40th Anniversary: Reached the big 4-0! Celebrated 40 years of exclusive service to BAE Systems people. Unveiled a fresh new brand and website to modernize the look. Marked the occasion with the credit union’s largest-ever giveaway – a brand new Toyota Yaris Hybrid car awarded to one lucky member at the AGM. By this time First Rate was a truly nationwide enterprise, managing over £17 million on behalf of 5,000+ members from Portsmouth to Lossiemouth. And in a nostalgic nod, John and Les – the original founders – were still serving on the Board (as President and Chairman, respectively), guiding the institution they started so long ago.

• 2024 – New Initiatives: Launched an Employee Hardship Fund in partnership with BAE Systems to provide grants for colleagues facing urgent financial crises. This initiative created a safety net for those who might not qualify for loans, reaffirming the credit union’s core purpose of people helping people. 2023 also saw record growth – thanks to a push for digital enrollment, membership jumped 18% in one year, bringing in as many new members in 2023/24 as the credit union’s first 28 years combined!

volunteer board members celebrating on the 40th anniversary

Supporting the BAE Family’s Financial Wellbeing
Throughout every chapter of its history, First Rate Credit Union’s central focus has remained the same: supporting the financial wellbeing of BAE Systems employees and their families. What does that support look like? It starts with the basics – encouraging a habit of saving and offering a trustworthy source of credit when life demands it. Over the decades, thousands of BAE colleagues have built up "rainy day" funds through easy payroll deductions and then slept a little better at night knowing they had a cushion. Just as importantly, the credit union has been there with affordable loans for all kinds of needs: buying a first car, fixing a leaky roof, covering Christmas expenses, or taking that well-deserved holiday. If these walls could talk, they’d tell stories of relief and gratitude – like the young apprentice who got help buying tools for his trade, or the family who managed to relocate for a new role thanks to a moving loan. Every loan issued wasn’t just a financial transaction; it was helping a friend and colleague get ahead.

Crucially, the credit union’s ethical, not-for-profit approach meant that profits went back to members (through dividend pay-outs or better rates) instead of outside shareholders. This has helped many members grow their savings steadily. For example, in the 2023-24 financial year, the credit union paid a dividend of 4.5% – directly sharing its success with the member-owners. It’s a tradition of reciprocity that reinforces that we’re all in this together. Long-time members often reminisce about how joining the credit union was one of their best decisions – it taught them to save consistently and gave them a reliable friend in times of need.

A Legacy to Celebrate – and a Future to Embrace
As we celebrate the 43rd anniversary of First Rate Credit Union, there’s a warm sense of nostalgia in the air. It’s in the pride of John Geraghty and Les Walker, who can look at a thriving institution and remember when it was just the two of them and a cash tin on the workshop bench. It’s in the memories shared by members who’ve been around since the early days – remembering paper ledgers, AGM raffles in the cafeteria, and that feeling of family that the credit union fostered. So much has changed in 43 years: the name “British Aerospace” gave way to BAE Systems, ledger books turned digital, and what started in one Lancashire hangar now connects employees all across the UK, managing over £22Million for 8000 members.

Yet, the heart of First Rate Credit Union remains the same. It’s still owned by its members, still run by colleagues you know and trust, and still driven by the simple idea of helping each other prosper.

Standing at this 43-year milestone, First Rate Credit Union is both a trip down memory lane and a beacon looking forward. The new digital platforms and nationwide reach mean the credit union can serve the modern workforce better than ever – whether you’re in a BAE office in Samlesbury or a shipyard in Portsmouth, you can be part of this community. And as we look to the future, the credit union’s history lights the way. The lessons learned since 1982 – about integrity, community, and resilience – will guide the path ahead. There’s a confident expectation that when the 50th (and even 75th!) anniversary rolls around, we’ll still be toasting the spirit of friendship and financial empowerment that John and Les sparked all those years ago.

So here’s to 43 years of First Rate Credit Union – a journey from a tiny spark of an idea to a shining example of what a caring financial community can achieve. Happy Anniversary to every member, past and present, who has been part of this story. Thank you for your trust and participation. And to our founders in the photograph (still smiling after all these years) – thank you for having the courage to start something truly first-rate. The legacy you began in that Warton hangar continues to take flight, stronger with each passing year, as we honour the past and embrace the future together.