WABASH, Ind. Beacon CU paid members a loyalty dividend of more than $806,588 on Dec. 31.
The $80-million credit union paid the money in a loan interest rebate. Those receiving the rebate paid interest on a loan during 2012, whose loan was not delinquent in its payments as of Dec. 31; and whose loan remained active as of Dec. 31.
The qualifying 6,973 loan accounts held by member-owners received 4% of the total interest paid during the year. The rebated interest effectively reduced the annual percentage rate paid to the credit union for loans by approximately 13 basis points. Each borrower whose loan qualified for the loan interest rebate received a deposit into their Savings Plus account.
Over the past six years, Beacon CU has returned more than $5.5 million of collected loan interest back to member-borrowers through loan interest rebates.
