Thanks to all who attended the AGM last Saturday. We can confirm that a dividend of 0.2% and loan interest rebate of 7.5% was approved by members at the AGM. This will paid into members accounts by the end of January 2018.
What does this all actually mean and how do our members benefit? The below briefly brings you through this and highlights that Savvi Credit Union, and other Credit Unions alike, always have the benefit of the members to the forefront of everything they do…people before profit.
Dividends are very similar to interest. If a credit union declares a dividend at the end of its financial year, each share you hold for that year is eligible for a dividend. The more shares you have with your credit union then the greater the dividend you will receive.
The amount paid to members varies from one credit union to another and not all credit unions are able to offer a dividend to members.
Essentially, loan interest rebate is an extra benefit to members who borrow from credit unions by giving money back to members. An interest rebate means that you get a refund of part of the interest you have paid on your credit union loan(s) in the past year.
For example, if you are a member on a DAS loan of 7.5%, then after the 7.5% rebate this results in a reduced rate of 6.93%. Interest rebate is automatically paid into a member’s Shares Account, so you don’t actually have to do anything to claim it.
What you do next is up to you! You can leave the rebate in your Savvi shares, you can withdraw it or you can use it pay off part of your loan.