HANSCOM AFB, Mass.–Hanscom Federal Credit Union announced it will pay a special Loyalty Dividend to members representing 2% of the interest paid on most consumer loans as well as a 2% bonus on savings.
The Loyalty Dividend payment was posted to member accounts on Dec. 31, 2015. It marks the 18th consecutive year the credit union paid such dividends, returning more than $8 million directly to its members since 1996.
“We are continually grateful for our members’ support and their confidence in us,” said Hanscom FCU Chairman of the Board Paul Marotta. “They make it possible for us to give this special dividend every year. I am proud we are able to offer this gesture of gratitude.”
The $1.1-billion Hanscom has 61,624 members.
Meanwhile, in Phoenix, the $1.3-billion Arizona FCU closed out 2015 by paying its members a $5-million bonus dividend.
Paid out on Dec. 31, the giveback is part of the credit union's PLUs (Payback for Loyalty to Us) program. This year's payout brings the total to more than $19 million paid back to active members since the program began in 2012.
"Credit unions are cooperatives. Following the principles of a cooperative, Arizona Federal members who contribute to the success of the cooperative – through loans, savings and using benefits of membership – share in excess capital when the credit union performs well," said Jason Paprocki, senior vice president and chief experience officer for Arizona Federal.
"Like most credit unions, we return excess capital to our members through lower loan interest rates and higher savings rates,” Paprocki said in a statement. “However, we're one of only a handful of credit unions that also provides patronage payouts to our members."
This year, Arizona Federal deposited the $5-million payout to more than 87,000 member accounts, with a minimum payout of $36 and an average payout of around $57 per member. Members qualified for a payout by completing an average of 10 account transactions per month. Payouts included a base amount for active membership as well as a dividend bonus and loan interest refund on eligible accounts.
Other bonus dividends/rebates announced by credit unions so far include:
- In Baltimore, as it has every year since 1981, MECU here is paying a cash bonus to members. Members have already been paid a loan interest rebate and at the end of December they will receive an extraordinary dividend. In 2008, the MECU Board decided to pay half the cash bonus at the end of June and the remainder in December in order to help the cash flow for employees of the Baltimore City School System, which make up a large portion of the membership. In total, members will have received $3 million in cash bonuses in 2015, the $1.2-billion MECU said. It has 115,000 members.
- In Hartford, Conn., Hartford Municipal Employee’s FCU announced it is refunding 2% of all interest paid by members on any loan during 2015, including car, home equity, personal, debt consolidation, holiday, vacation or VISA credit cards. This is the second consecutive year the credit union’s board has approved such a refund. Loan holders will receive 2% of interest paid from Jan. 1, 2015 – Dec. 14, 2015 on all loans.
- In Kingsport, Tenn., the $3.2-billion Eastman Credit Union is paying a $10-million bonus dividend. It is the 18th year the credit union has paid the bonus, distributing more than $80 million over that time.
- In Edwardsville, Ill., Scott Credit Union here is returning $1.3 million to members, with funds being directly deposited into member accounts. Scott CU reported it has given active members an additional 3% APY bonus dividend on their deposits and a rebate of 3% of the interest they paid this year on any loan or credit card as a means of saying thank you for members’ loyalty. SCU has more than 131,000 members. SCU has paid a bonus dividend for 24 consecutive years.
- Meanwhile, in Edmonton, Alberta, Servus Credit Union is paying out a $47.9-million bonus to members as part of its annual profit-sharing program. The amount is second only to the $50 million paid in 2014.
- The $301-million Partner Colorado Credit Union paid its members a $1-million in pre-holiday bonus dividend. The marketing theme for this year’s bonus dividend is “Thanks a Million…Literally." More than 25,000 members will receive a bonus dividend. The average bonus dividend is $59.27, and the highest is $200.
- In Colorado Springs, Colo. Ent Federal Credit Union’s members received more than $3.4 million dollars in annual loan rebates as part of the credit union’s “Ent Extras” loan benefit program. The Ent Extras program includes a loan payment grace period, alerts and push notifications and other loan-specific benefits – in addition to paying members annual loan rebates on every loan, every year. Annual loan rebate amounts range from $75 for a mortgage loan to $10 for a personal loan or line of credit, Ent said.