Savings can earn a Dividend at your Credit
Union
During the
financial year the funds of the credit union, i.e. shares, that are not out on loan to Members, are deposited
in secure bank and trusted building society accounts. In the past these shares have accumulated some interest
which, along with the interest that the credit union charges for loans, provides the income to run the office
and equipment, etc.
If there
is enough interest to provide a surplus (and there usually is!) then it is our custom to equitably divide that
surplus up at the Annual General Meeting and give it back to our Members as a 'dividend on their
shares'.
The
dividend is decided by all the Members present at the AGM (Wednesday 28th March
2018 at 8:00pm in the offices) and is then normally added to Members' accounts during
the month of April. Members can obviously influence the amount of dividend paid by attending the AGM and
voicing their opinion.
The
dividend is affected by
-
The prevailing
economic climate
-
The amount of
bank interest received
-
The amount of
loan interest charged (maximum is 12.64%)
-
The costs
incurred in keeping the credit union running (electricity, rates, wages, equipment, insurances,
etc.)
-
The efficiency of
the credit union's Board of Directors
Under Age Depositors
Under Age Depositors (under 16 years) do not receive a
'dividend'. Their savings are kept by the credit union in completely separate bank accounts from the senior
Members and all interests earned (less accounting expenses) is given to them annually as 'interest'. Again,
these amounts are credited equitably to the Under Age Depositors accounts - usually in
April.
|