Access Credit Union - Member Rewards

Our Member Rewards program offers each member the opportunity to share in our earnings. It’s a reward for being a loyal member of your credit union. The Member Rewards program consists of three components: patronage, share redemption, and dividends.

In any given year, the amount allocated to each component can vary. For example, Member Rewards may include a redemption of shares and payment of dividends and no patronage; or, it may include all three. The Member Rewards payout is never guaranteed and is subject to the Board of Directors annual approval after meeting the regulatory and capital requirements of the credit union.

It is a priority for Access Credit Union to work toward alignment of our share program under Access’ Member Rewards program. Any Access CU member with savings or loans will also have the opportunity to benefit from the Access Member Rewards Program.

While our Member Rewards program is an important way for us to show our appreciation for your membership, it's important to note that these rewards are never guaranteed. We must adhere to regulatory requirements and make responsible business decisions that benefit our members both now and in the future.

Subject to annual board approval, our intention is to continue providing patronage through the Member Rewards program and to pay dividends to members holding common, preferred, and surplus shares, while honoring legacy share programs. Announcements regarding Member Rewards for the previous year are made in March.

The amount of patronage any member receives is based on how they utilize the deposit and loan services. The more business you do with us, the more opportunity you have to share in our earnings.

The amount a member receives is based on:

a) Interest earned on eligible non-registered deposits

b) Interest paid on eligible lending products

Members who save and borrow with Access are allocated a percentage of the interest they earned and the interest they paid during the year. The allocation rate may vary from year to year as it depends on the amount of earnings achieved.

Access strives to redeem shares to members in the form of cash, per earlier merger commitments.

Members who hold surplus shares, preferred shares, and common shares (excluding membership shares) will be eligible to earn a dividend. The dividend will be paid out in the form of surplus shares.

The amount of patronage any member receives is based on how they utilize the deposit and loan services. The more business you do with us, the more opportunity you have to share in our earnings.

The amount a member receives is based on:

a) Interest earned on eligible non-registered deposits

b) Interest paid on eligible lending products

Access strives to redeem shares to members in the form of cash, per earlier merger commitments.

Members are allocated a percentage of the interest they earned and the interest they paid on eligible products during the calendar year. The allocation rate may vary from year to year as it depends on the earnings achieved. The Board of Directors approves the total amount of Member Rewards after the year-end financials are completed. The Member Rewards payout is never guaranteed and is subject to the Board of Directors annual approval after meeting regulatory and capital requirements of the credit union.

As part of our merger commitments, Access Credit Union will continue to focus on maximizing the ability to pay patronage to members as part of the cooperative values and belief that members should share in our profits. The objective of our Member Rewards program is to pay bonuses in cash to our members. The Member Rewards payout is never guaranteed and is subject to the Board of Directors annual approval after meeting regulatory and capital requirements of the credit union.

If patronage is paid as part of Member Rewards these funds will be paid in cash via deposit to a chequing or savings account (if available) or if no account is available, it will be applied to the originating account. i.e. investment or principal payment on the loan.

All members paying or receiving interest on an eligible product to warrant an allocation of $1 or more in patronage are eligible for participation in the program.

An allocation to individual Member Rewards plans based on interest earned on savings or term deposits is taxable as interest income in the year received, as is any share dividend paid on existing Member Rewards Plans. Both are included in the T5 income tax slip issued by Access Credit Union when total interest is over $50 (including patronage and dividends). Even if members don’t receive the T5 slip, it is still taxable and should be included when filing tax returns.

An allocation based on interest paid on a loan is taxable only if the loan interest was tax deductible, as in the case of a business loan. It is the responsibility of the member to determine if the allocation is taxable and to report it if necessary on their income tax return.

By increasing your use of credit union loan and deposit services, you increase your participation in the Member Rewards program!

Share redemptions or cash rebates—if applicable based on merged credit union commitments—will be paid in cash via deposit to a chequing, savings, or registered variable account (if available).

Access Credit Union will continue to strive to redeem existing shares as cash to our members as per prior merger commitments. This cash payout will occur over several years, subject to Board approval and the financial results of the credit union. The objective is to continue to pay dividends to members holding common, preferred, and surplus shares while honouring legacy share programs (subject to Board approval).

Member Rewards payouts will show on the regular consolidated statement of accounts for all active members who receive paper statements and e-Statements.

Your statement will detail your payout as:

Payout Type	Statement Detail
Patronage	Member Rewards
Dividends on Surplus Share accounts	Share Allocation
Common Share Dividends	Common Share Dividends
Preference Share Dividends	Preference Share Dividends
Orphan Shares	Orphan share payout, funds being mailed
Crosstown Civic Surplus Shares	Surplus Share Redemption Payout or Deposit

The same terms will be displayed in your account activity in online banking and on the mobile app.

Yes, a $1 dividend is the minimum.

Dividends are reported as Interest Income on T5. As stated in The Credit Unions and Caisses Populaires Act of Manitoba, Part V.1 Applications of the Securities Act does not apply to the issue or sale of surplus shares by a credit union. Therefore, dividends paid in the form of surplus shares are not reported as dividend income to Canada Revenue Agency. Dividends are reported as interest income and included in the total interest income earned.