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Credit Union Bonus Dividend?

RJM
  |     |   499 posts since 2011

I got a $17.72 bonus dividend in my share account from a local credit union.

It was the first time I ever got one of those.

I presume it was because I kept..$15k or whatever it was in an RCA for 6+ months? But the bonus went to the share account.

I stopped using that checking when I removed it for the Ally 1% bonus deal and I had determined I probably won't use it again going forward given their 3-3.05% is not enough of a premium to bother with the 12 transactions and an ACH and log in every month.

I can't recall the details of the account... I think it was $15k limit and I probably had it open 6-8 months.

If they pay those every year, while its not a lot, it may increase the effective rate of their RCA.

If I had that RCA for 8 months with an avg balance of $15k, it might increase the effective yield by about .177% if my math is right. So 3.05% might become 3.227% which makes it slightly more attractive.

Have you ever gotten bonus awards year after year from a credit union?

I sent them an email to inquire.

I had decided to probably stop using that RCA just because the premium to a savings/mma is not enough to justify the work.

But if they have paid that out or more every year for years, maybe I open it back up when the weather warms up?

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3


Answers
Sylvia
  |     |   389 posts since 2012
I received a few of them before the crash. They're indeed a "bonus," not something you can count on. I never got one more than once from a single CU. It means your CU did well in the past year and they've got extra profit to share with members.
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RJM
  |     |   499 posts since 2011
She responded that they have paid it every year since she has been there. Said it was 6% of whatever interest I was paid. I guess thru Nov.
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RJM
  |     |   499 posts since 2011
So its 3.04% probably makes it about 3.22%. Meh.
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Sylvia
  |     |   389 posts since 2012
Sounds like they intend for it to be a retention reward, possibly just on the RCA. Since they do it annually, it makes sense to just increase the stated interest rate and eliminate year-end "bonus," except you'd have little incentive to stick it out for the year. The bonuses I've seen have been at the account level, based on # of products in place, e.g., CDs, loans.
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RJM
  |     |   499 posts since 2011
I doubt it's only for the RCA. But all their other deposit rates are uninspiring.
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RJM
  |     |   499 posts since 2011
on their front page they tout they paid back members over $600,000 in 2017. Never paid attention to it. their best cd is a 19 month at 2.2%.
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Ally6770
  |     |   4,294 posts since 2010
We were building a home in 2010-11 and I kept the money for it in a money market account that offered the highest rate in our area. They offered the bonus at that time and I did not know it. We were able to purchase a built in oven, stove top grill and the counter depth refrigerator with the money. It was nice to get the upgrade.
I probably would have had a slide in stove and lost 6 inches in the kitchen or in the bedroom to get a regular size refrigerator and would have had a smaller island.
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1
Ricochet
  |     |   522 posts since 2010
How wonderful for you.
Too much irrelevant info.
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