This holiday season, many members will get something extra from the credit union--in the form of a year-end rebate on loans or dividends on their deposits, one of the benefits of being a member/owner of a credit union.
Announcements by several credit unions recently have underscored that credit unions return excess proceeds to their member owners--something that for-profit financial institutions don't do. With the economy still struggling, and consumers feeling pinched, credit unions know that this year, giving something back will mean even more. Even credit unions that have tighter margins than usual this year make an effort to give back.
A good example is MECU of Baltimore (Md.) Inc. The more than $1.1 billion asset credit union, which has more than 99,000 members, paid its members a loan interest rebate of nearly $1.14 million--about 6% of the interest they paid on their loans between June 25 and Nov. 30. It also will pay members an extraordinary dividend on deposit accounts at the end of December. The rebate is in addition to more than $2 million cash bonus paid its members in June. By the end of year, the MECU will have paid members more than $4 million in cash bonuses.