Scott Credit Union, a $1 billion institution based in Edwardsville, Ill., on Monday said it declared a bonus dividend and loan interest rebate in November, giving nearly $1.5 million back to members.
The money was directly deposited into Scott Credit Union members' accounts recently. With the holidays quickly approaching, management said, members who have savings accounts or loans with the CU are "realizing the value of membership with a gift of extra money in their pockets."
Scott CU said in addition to paying higher-than-market rates on its members' accounts, it gave active members an additional 3% Annual Percentage Yield bonus dividend on their deposits and a rebate of 3% of the interest they paid this year on any loan or credit card to thank them for their loyalty.
Scott CU noted its total membership grew to more 135,000 people this year. Its board of directors approved the bonus dividend and the loan interest rebate as "another way to share the success of the credit union in 2016" with its members.
"Since members own the credit union, this is a great way for us to thank them and share our success," Frank Padak, Scott CU's president and CEO, said in a statement. "This is one of the benefits of being a member with accounts at Scott Credit Union. Since we are a not-for-profit cooperative, we give our earnings back to members through dividends, loan interest rebates, better rates on savings, lower rates on loans, lower fees and the most convenient services possible."
Over the past eight years, Scott Credit Union has given bonus dividends and loan interest rebates to members totaling more than $9.2 million, Padak noted.
"We have been able to issue a bonus dividend to our members for 25 consecutive years," he added. "For the past 10 years we also were able to give the loan interest rebate. Our members are the reason we have been successful and it is nice to show them that active membership in our credit union is a good decision on their part."
According to Padak, the credit union has positioned the organization to remain "financially strong" for its members and "attractive" to new members who are looking for the best value.
"We are one of the premier lending institutions in the country and have exceptional programs for mortgages, auto loans and credit cards," Padak said. "We also work very hard to be efficient so we can keep fees low and increase the overall value we offer our members."
