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Patronage Refund

The Board of Directors has announced a Patronage Refund for 2009 in the amount of $450,062 to be equally divided amongst our borrowing and depositing members. What does this mean to you? Here are some examples:

Let’s say you took out a Guaranteed Investment Certificate on December 31, 2008 in the amount of $10,000. The going rate at that time was 3.50%, so on December 31, 2009 you would have received $350 in interest. The Patronage Refund announced means you would receive a bonus of 25% on the interest you received in 2009 or $87.50 bringing the total interest you received on your $10,000 to $437.50 for an actual return of 4.375%!

Okay, let’s not forget about our borrowers. Let’s say you borrowed $10,000 from us on December 31, 2008 at a rate of 10% and paid off the loan on December 31, 2009. You would have paid $1,000 in interest. The Patronage Refund announced means you would receive a rebate of 10.00% of interest paid or $100.00. This means you actually only paid $900.00 in interest. That works out to 9.00%, not 10%!

Does your Financial Institution pay you for dealing with them? We do!