WHITEFISH, Mont.–Credit unions across the country continue to announce year-end bonus dividends and loan interest rebates.
Among the latest to demonstrate what owner-membership means:
- Whitefish Credit Union in Whitefish, Mont., said it paid out its semiannual 1.50% dividend to members on Dec. 31, meaning $20 million was distributed to 55,000 members during 2019.
“We are excited to provide our members with a dividend rate that is more than 16 times higher than the average national savings rate, at the same time that many other institutions have lowered their rate,” said WCU CEO James Kenyon. “Despite multiple rate reductions by the Federal Reserve over the past six months, the fact that our dividend remains exceptionally high is a direct reflection of our mission to return value to our members.” Whitefish Credit Union said it does not require its members to maintain a minimum balance to receive dividends on their share accounts. Dividends are based on the average daily balance of an active share account, and they are paid semiannually.
- Hanscom FCU at Hanscom AFB in Massachusetts said it is paying out a Loyalty Dividend of $437,000 to members. “The Loyalty Dividend payment will be posted to member accounts on Jan. 15, 2020, in order to include a wider variety of loan products than before, this year including student loans and first mortgages,” the credit union said. This is the 23rd consecutive year the credit union has paid dividends, returning over $11 million directly to members since 1996.
- In Los Angeles, Firefighters First Credit Union distributed more than $2 million to its members, the 38th year it has done so. This year’s distribution brings total profits returned to members to over $48 million. “Firefighters do so much more than respond to fires. They make communities safer, stronger and better prepared for emergencies,” said Dixie Abramian, Firefighters First Credit Union’s president/CEO. “They stayed strong all year—through wildfires, hurricanes, floods and other emergencies that happened nationwide. We are heartened by how much firefighters and their families give back to their communities and are proud to share our success with them. No group is more deserving than the Fire Family.”
The payouts represented a refund on the interest members paid on loan accounts and a bonus on the dividends earned in savings accounts.
- The $1.2-billion Community Choice Credit Union in Farmington Hills, Mich. reported it is paying members more than $3 million as part of its annual giveback.
- In Phoenix, Arizona FCU said for the eighth year in a row it is paying a year-end bonus dividend, this year amounting to $6 million. The $6 million distribution for 2019 brings the total amount paid to members to more than $42 million since the program's inception in 2012, AFCU said.To qualify for a Plus Payout, members had to have an active Checking Plus Account as of Dec. 31, 2019. In return, members with a qualifying loan or credit card account received a partial refund of any interest they paid in 2019. Accountholders with funds on deposit, received a year-end bonus dividend.
- In Lancaster, S.C., Founders FCU paid members $5 million in Loyalty Bonuses through its “Loyalty Select” program, a special high-yield savings account where rewards are deposited.
- Also in South Carolina, Sumter-based SAFE Credit Union paid members $1.1 million in bonus dividends and loan interest rebates.
- Educators Credit Union in Racine Wisconsin paid $3.4 million to its members as part of its “Member Loyalty” program. According to ECU, Member Loyalty is a rewards program that allows members to unlock their reward by having an active checking account each month. Active checking involved having a deposit coming into the checking account at least once per month and making a combination of five transactions out of the account.
“Once the member unlocked their reward with an active checking account, they could earn their year-end reward. The reward accumulated based on the products and services used,” the credit union said. “For example, a member who made 100 purchases with their debit and credit cards could earn $4 for the month. Logging in to Online Banking earned $1 a month. In all, members could earn a total of $165 with the Member Loyalty program.
Over the last three years, Educators Credit Union said it has deposited more than $10 million into members’ accounts with their reward program.