HARRISBURG, Penn.–Two more credit unions have announced year-end bonuses and rebates.
Pennsylvania State Employees Credit Union said it is paying a $10-million “Relationship Reward” to its members. Since launch of the program in 2013 it has returned $52.5 million to participants.
"While many financial institutions are adding fees, we’re excited to give our members money back,” said PSECU CEO Greg Smith. “In the coming year, returning money to our members will continue to be at the heart of what we do. In addition to all the other value-focused services, this week we introduced a cash rewards credit card, the Founder’s Card. It joins our other low-rate lending and refinancing solutions to help members save more of what they make."
Meanwhile, in Midland, Mich., Dow Chemical Employees’ Credit Union has announced what it is calling the largest Member Giveback in its history – more than $15 million in rebates and rewards.
For 2016, DCECU said it has given back 75% of the interest members in good standing paid on their eligible loans over the course of the year and gave them a cash reward equal to 75% of the interest they earned on their savings. Members in good standing also received rebates on their Visa Debit Card transactions.
DCECU reported it has returned a share of its profits to members every year since 1980. This was the third consecutive year that the credit union was able to give back 75%.
“We are one of only a handful of financial institutions in the country that shares its profits with its members to this extent,” said DCECU President/CEO Dennis Hanson. “The credit union’s careful management of our members’ deposited funds – including prudent investments in loans to members – plays a large role in our ability to offer rebates and rewards while still maintaining a healthy capital cushion. But the most important factor is the loyalty and engagement of our members. When they choose DCECU for their savings and loan needs, they can benefit in proportion to their financial transactions with us.”
As an example, DECECU noted that at the 75% giveback rate for 2016, a member with a $125,000 mortgage could expect to receive a Loan Interest Rebate of approximately $3,750.
“That’s money the member could use to help fund a child’s education, save for retirement, put a down payment on a car, pay for a home improvement project or take a dream vacation,” Hanson said.
The $1.5-billion DCECU has 58,000 members.