LANCASTER, S.C. — Founders FCU here has awarded a $5.7-million Loyalty Dividend to its members and has created a Loyalty Dividend Calculator so members can see how adding new products and services would impact the size of the dividends they receive.
The reward was given to approximately 86,000 members, with amounts based on their relationship with the credit union. While Founders has paid out more than $40 million in dividends since 1992, the Loyalty Dividend is a new feature designed to reward member loyalty ever year from here forward.
"We have a long history of putting our members first and rewarding them for their loyalty with cash back is just another way we can thank them for their business," said Bruce Brumfield, president and CEO of the 196,000-member, $1.6 billion credit union. "There aren't many credit unions who give back as much as we do to our members. You certainly won't see banks doing this."
Founders joins a growing number of credit unions who are rewarding members specifically for their loyalty and the depth of their relationships with the credit union, rather than an across-the-board equal reward for all members.
Founders members qualified for the dividend based on the amount of interest they have paid on loans or earned on deposits since January 1, 2013, and received an additional $25 if they enrolled in e-statements.
Members under the age of 18 automatically received a $25 Loyalty Dividend as long as they had active accounts. Those members were also eligible for the $25 e-statement bonus. Members age 18-25 can received $25 for active checking accounts with e-statements, along with a percentage of year-to-date interest paid.
The CU offered the example that a member with a $75,000 mortgage, $10,000 auto loan, $1,500 in checking, $1,000 in savings and e-statements would receive about $121.
The CU's Loyalty Dividend calculator can be seen at
