To say that the credit union is a ‘non profit’ enterprise is not entirely accurate. Naturally, it is vital that business is operated in a sound, professional and successful manner and that each year a surplus or profit is made. However, this surplus, after transfer to reserves, is returned to the members by way of annual dividends and in some years a loan interest rebate may be returned to borrowers.
Dividend is calculated on a daily basis on the share balances held during the financial year. The credit union financial year end is 30th September and dividends earned (if any) are lodged to every members account once a year.
While the Board of Directors will recommend a dividend rate at AGM, the members in attendance on the night then vote to approve this rate. Members at AGM can elect to reduce this rate but cannot vote to increase it.
There is no guarantee that a loan interest rebate or share dividend will be paid in future years. Terms and conditions apply.