MADISON, Wis. (1/11/13)--Call it patronage dividends, loyalty rewards, or cashback rebates--either way, members win. Three more credit unions have announced they're paying members back for their business.
"We believe that when the credit union is successful, it's not only a sound business practice to reward the owners of the credit union and share our surplus, but that this practice clearly demonstrates the credit union difference," said David Ackerman, president/CEO of U$X FCU, $204 million asset credit union in Cranberry Township, Pa.
U$X FCU's 2012 Member Loyalty Reward payout totaled $420,000. The interest rebate goes to members of good standing with deposit or loan accounts, except for certain mortgages (Life is a Highway Jan. 8).
"Unlike many financial institutions, when U$X FCU has a successful year, we distribute part of the earnings to the people whose loyal support helped us be successful," Ackerman said.
The credit union has more than 20,075 members. Its rebate equaled six cents per dollar of dividends earned and/or loan interest paid during 2012. It has paid more than $6.6 million during the past 11 years.
In Schaumburg, Ill., Motorola Employees CU (MECU), with $889 million assets and 39,180 members, paid a special patronage dividend totaling $750,000 on Dec. 31--the third consecutive year MECU has returned profits to members. The latest dividend is in addition to regular dividends it pays into members' savings accounts.
All active members in good standing received at least $5 in their MECU savings accounts. The dividend averaged about $19 each, with members who made the greatest use of the credit union's services receiving an average $86.
OMNI Community CU, Battle Creek, Mich., announced its fifth annual Cashback Rebate will be deposited today in members' regular savings accounts (Michigan Monitor Jan. 2). Since the $290 million asset credit union started its rebate program in 2008, it has returned $4 million to members.
"Without their faith that we're always looking out for their best interests, we wouldn't be the institution we are today," said OMNI CEO Ted Parsons. "That's a responsibility that everyone at OMNI takes very seriously. Our membership is the best out there, and every time we help someone, we're trying to show them why they made the right decision coming to us."