Dividend

A dividend is declared by your credit union at the end of each year. The amount varies from one credit union to another and is determined by the total amount of savings held on deposit by all members at the individual credit union and the total amount out on loans by all members.

Before the dividend is declared, expenses must be paid out. As the board of directors and committees are made up mostly of volunteers who do not receive any payment, expenses are lower and return on savings can be greater than in other financial institutions.