As we kick off the new year, we want to thank our members for being a part of the MVFCU Community! The Patronage Dividend is your extra slice for being an active MVFCU member. Look at your December statement- If you were paid a Patronage Dividend for your loyalty to MVFCU, you will see a deposit labeled 2020 MVFCU PATRONAGE DIVIDEND PAYOUT.
What is a Patronage Dividend? A dividend or distribution that some co-operatives pay to their members. Patronage dividends are given based on proportion of profit made by the business. Once this amount is figured out, the dividend is calculated according to how much each member has used the Co-op’ services.
How much is the dividend? The total amount to be disbursed is decided annually by the Board. This year it is $90,000. The amount paid to each member is based on that member’s business with MVFCU, and ranges from minimum of $4.45 to $300.
How will I know if I got a dividend? Members will see a deposit in their Share Account (S1) when they login to online banking, or when they receive their December statement.
Do I need to do anything to get my Patronage Dividend? No. If you earned a patronage dividend, it will be automatically deposited into your savings account at the end of the year. It would be credited to your savings account and titled as 2020 MVFCU PATRONAGE DIVIDEND PAYOUT.
How is the dividend amount calculated? The dividend was paid to members with active accounts in good standing, and was based on several 2020 factors, including: interest paid on loans, dividends earned on deposit products, active use of debit cards, and length of membership.
Will MVFCU be doing this every year? Minnesota Valley Federal Credit Union plans to share its earning with members in future years. Your Board is dedicated to sharing the wealth through a patronage dividend whenever financial circumstances allow it.
I wasn’t paid a Patronage Dividend. Why not? The more products you use and the higher the balances you maintain on your accounts, the greater the opportunity for a reward. Although a Patronage Dividend Payment is never guaranteed, the best way you can ensure you can earn one in the future is by continuing to expand your relationship with us and by encouraging other members to do so as well.