Patronage

What is Patronage?

Sharing our success with the people who make it possible is an important part of being a Credit Union. Patronage does just that, shares our profits with you, our members. Patronage is our way of thanking you for doing business with us. It is a part of our commitment to giving back to the communities we serve.  Radius Credit Union is proud when our financial success provides the opportunity to share our profits, a perk you won’t find at most major banks!

Patronage is an investment you have in Radius Credit Union. When the Credit Union annual financial obligations are met our Board of Directors determines an allocation of surplus, part of this allocation maybe in the form of Patronage.

Radius Credit Union is a co-operative which provides full financial services and is guided, owned and controlled by the people who use our services. One of the benefits of supporting Radius Credit Union is surplus profits are often given back to the members in the form of a Patronage Dividend.

How Does Patronage Work?

The Board of Directors annually considers patronage based on the yearly financial performance of the Credit Union. If a payment is declared, the patronage calculation is based on interest you’ve paid to us, as well as interest we’ve paid to you. If patronage is declared by the Board of Directors it is paid out in the first quarter of the year. Members receive half of the allocation paid in cash and the other half is held in the members equity account. Member Patronage payments may also include an interest return paid on your Member Equity Account. This amount is also determined and allocated by the Board of Directors.

The more business you do at Radius Credit Union the higher your patronage amount will be. The allocation you will receive changes from year to year.

Over the past 8 years we have paid out over $2.7 million in Patronage to our members!!

 

The following are some examples to illustrate a few situations:

Member A

Member B

Member C

Interest Paid on Loans Nil $6,400 $29,000
Interest earned – Savings $ 500 $ 600 $ 1,600
Term Deposit Interest $3,500 $ 500 $10,000
Total Interest Paid & Received $4,000 $7,500 $40,600
Allocation of 5% results in a credit of $ 250 $ 375 $ 2,030
Allocation of 7% results in a credit of $ 280 $ 525 $ 2,842
Allocation of 9% results in a credit of $ 360 $ 675 $ 3,654