Dividends: the return on your savings

As a member of our credit union, you’ve probably heard the term “dividend” in relation to your savings. But what exactly is a dividend, and why is it important for organisations like ours? In this article, we’ll answer these questions, helping you understand how dividends work and how they benefit both you and the Credit Union.

What Is a Dividend?

In its simplest form, a dividend is a payment made to you, the member, based on the average daily balance in your account over the past financial year. These dividends are usually paid on an annual basis. As a member of the credit union, you’re not just a customer; you’re an owner. Instead of distributing profits to external shareholders, Credit Unions return these profits to their members as dividends, ensuring that everyone shares in the success of the mutual organisation.

Dividends offer numerous advantages for our members, including:

• A source of passive income: The dividends you earn provide a simple way to grow your savings without any extra effort.
• Greater potential dividends on your savings: The more you save with the Credit Union, the greater the potential for receiving higher dividend returns, subject to the Credit Union’s performance.
• Supporting the wider community: When your dividends are saved with the Credit Union you are helping improve the financial wellbeing of the entire Police community.

Reflecting on Our Dividend Rates for 2023-2024

After our recent Annual General Meeting (AGM), we are pleased to announce our dividend rate for the financial year 2023-24. This rate reflects our strong financial performance and our commitment to rewarding you for your continued trust and participation.

We are proud to offer competitive dividend rates to reward your loyalty. If you have any questions about our dividend, feel free to get in touch, we’re here to help you make the most of your credit union membership.

Here’s to another successful year of growth and shared prosperity and we look forward to the new financial year.

Dividends and tax

Credit Unions are not required by law to deduct taxes from dividends. It is the member’s responsibility to report their income, including any dividends earned, for tax purposes. For more information on potential tax obligations, please visit the official .GOV website by clicking here.