# Is the dividend paid to a percentage of your savings or loan amount?



## Shawady (25 Jan 2012)

Is the dividend paid to a percentage of your savings or loan amount?
For example if you have 5K in savings and a loan of 15K, which amount is used to calculate your dividend?


----------



## MANTO (25 Jan 2012)

Shawady said:


> Is the dividend paid to a percentage of your savings or loan amount?
> For example if you have 5K in savings and a loan of 15K, which amount is used to calculate your dividend?


 
Calculated on Shares (Savings)


----------



## Shawady (25 Jan 2012)

MANTO said:


> Calculated on Shares (Savings)


 
Thats what I would have presumed also, but I seem to remember a friend of mine telling me that he got a decent sum of money of the CU at the end of the year because he had a huge loan with them. I got the impression he did not have much savings.


----------



## ClubMan (25 Jan 2012)

Maybe he meant a refund of some of the interest paid which was then used to reduce his outstanding loan balance? I can't see how any financial institution would PAY interest to a borrower on a loan that they have!


----------



## MANTO (25 Jan 2012)

I reckon the didend was paid into his shares and was then allowed to offset them against his loan.


----------



## ontour (25 Jan 2012)

Some credit unions have a dividend on shares and a rebate on interest paid.  The logic would be that at the start of the year they charge 10% interest on aloan.  At the end of the year, they look at the available surplus and decide to give part to savers and part to borrowers.  In retrospect you may have got the loan for 8% but there is no guarantee that they will give any rebate the next year.


----------

