The Iceni Community Bank will be a branch of the South Norfolk Credit Union, a financial co-operative owned and democratically controlled by its members and run solely for their benefit.

The new bank is registered with the Financial Services Authority and will be open for business every Tuesday afternoon, between 1pm and 4pm, at Swaffham Community Centre in Campingland.

Iceni Partnership manager Dennis Tallon explained that members save with the credit union and then take out loans if they wish. Interest rates are very competitive for small loans and some free insurance is provided for members.

"Savings do not attract a set interest rate but any profits made by the credit union are paid out to savers as an annual dividend," he said.

Mr Tallon said a team of 14 volunteers have been trained to run the bank and Peddars Way Housing Association will be a partner in the venture because it is keen to see its tenants helped during a time of tight financial restraint.

"The people saving with it know that it is safe and affordable, and all the cash stays in the community," he said. "The savers in the community are helping the borrowers, and the borrowers are helping to provide dividend income for the savers. Any profits are ploughed back to the members in the community."

South Norfolk Credit Union is based at Long Stratton and until now its nearest branch to Swaffham has been the Wayland Community Bank at Watton, he said.