Some of America’s credit unions recently paid out extra dividends and rebates to their members ranging from $50 to thousands per member, an occurrence rarely seen since the 2008 financial crisis.
The payouts are normally based on a member’s total deposit and loan relationship with the financial institution, Credit Unions Online reports.
Earlier this month, the Illinois-based CEFCU announced that it would pay a record $9 million in year-end dividends to its members.
“I’m proud to say that after 75 years, the credit union not-for-profit business model of borrowers and savers helping each other is still alive today,” CEFCU President and CEO Mark Spenny said, according to Credit Unions Online. “As a result, those members who borrowed and saved with CEFCU during 2012 are sharing in a record $9 million extraordinary dividend. When business is better than projected, members share in those benefits.””
ACIPCO Federal Credit Union in Alabama has a long history of payouts. For the past 20 years, the institution has issued rebates to its members and plans to pay more than $1.7 million this year, the largest rebate ever offered to its members.
“We’re extremely fortunate to be able to offer such a large rebate with the economy in such an unstable state,” ACIPCO CEO Mike Harrell said, Credit Unions Online reports. “The credit union doesn’t take credit for this rebate; we owe our success to our loyal members.”
The Alabama-based Guardian Credit Union will pay out more than $800,000 in interest rebates and dividend bonuses to its members, the second year the credit union has been able to issue rebates.
DFCU Financial in Michigan will return half of this year’s earnings to its members. Since 2006, DFCU has paid out more than $130 million to members, according to Credit Unions Online.