Proposed Dividend CORE

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PeeBee

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CORE Credit Union is proposing a dividend of only 0.40%. The average interest on Loan A/Cs is 8.62%. that is less than most competing institutions

I think the Credit Union(s) has lost sight of the Saving MEMBERS who provide the funds for Borrowing MEMBERS. Time for savers to look elsewhere?
 
Thank for the alacrity of your response. I was rather hoping to get a more 'considered' reply. However, I will of course 'attend' the ONLINE AGM , raise my concerns and probably vote with my feet!
 
PeeBee said:
I was rather hoping to get a more 'considered' reply.
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I considered the matter very carefully before replying.

Anyway, if you're looking for better deposit rates than any CU offers then see here:

Best Buy - Savings Best Buys

Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...
www.askaboutmoney.com
 
Thank you ClubMan. I am well aware of the market place for retail deposits. That said, I find it disappointing that a large, 'profitable' Credit Union charges,on average, more than 20 times more on loans than it pays by way of dividend. The nature of a Credit Union is MUTUALITY; charging 8.62% while only paying 0.4% is a gross distortion of the MUTUALITY that should underpin a Credit Union.
 
Credit Unions never treated their members fairly.
E.g. by insisting that they keep 25% of any loan on deposit/in shares thus inflating the cost of credit significantly above the stated APR.
Credit Unions will only change how they do things if active members attend general meetings and make their feelings known.
 
The CORE AGM will, yet again, be an ONLINE meeting where the chances of rejecting the motion to pay a paltry 0.4% dividend tends towards zero
 
The banks and CU are flooded with deposits.

They have no need to compete for deposits.

Indeed, some CU have refused large deposits, as there are costs for the CU, and no corresponding income, as their loan books are way smaller than their deposits.
 
I think you will find that the CUs have been 'earning' on money markets. The day of negative returns is past. The management fees of many CUs is excessive and they rely on the inertia of saving Members when proposing derisory divends
 
PeeBee said:
The management fees of many CUs is excessive and they rely on the inertia of saving Members when proposing derisory divends
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Who is benefitting from the excessive management fees?

If they were reduced to what you deem to be an acceptable level, how much dividend would you expect in return? Any other suggestions on how to increase the dividend?

PeeBee said:
That said, I find it disappointing that a large, 'profitable' Credit Union charges,on average, more than 20 times more on loans than it pays by way of dividend.
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What are the 'profits' and where are they going?

Might be helpful to consider if you are raising the issue at the AGM or rallying other members into action.
 
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