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What are member rewards?
We love our members, and our Member Rewards program is how we show appreciation for your loyalty. Unlike banks, credit unions are true co-operatives: Our members are also our owners who hold a share in our company.
As shareholders of Access Credit Union, our success is your success. Each member has the opportunity to share in our earnings. It’s a reward for being a loyal member of your credit union.
Because earnings from deposits and loans are what make these dividends possible, the amount any member receives is based on how they utilize these services. The more business you do with us, the more you share in our earnings.
How it works
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 you 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.
Frequently Asked Questions
After satisfying requirements for reserves, the Board of Directors may set aside a portion of earnings for credit union members. Members can benefit from three components of the Member Rewards program:
- patronage;
- dividends on preferred shares, common shares, and surplus shares (excluding membership shares); and
- share redemptions.
Patronage is earned and calculated from:
- Interest earned on eligible non-registered deposit accounts
- Interest paid on eligible member loans, mortgages, and LOCs (interest paid within LOC limit)
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 once the year-end financials are completed.
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.
Share redemptions or cash rebates—if applicable based on merged credit union commitments—will be paid in cash via deposit to a chequing or savings 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:
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The same terms will be displayed in your account activity in online banking and on the mobile app.