Dividends

As a not for profit organisation, we may share a percentage of our profits with our members. This is known as a dividend. Credit unions keep their money within a community of credit union members because we do not need to pay profits to external shareholders. The remaining profits are re-invested in the business to provide a better service to our members.

Given the current economic climate, we try to offer a competitive return on our instant access savings account. You may wish to consider saving with us on the basis of us being an ethical and local alternative when compared to banks, building societies and other financial providers.

Here are the dividends we have paid to our adult, corporate and young saver members over the past five years:

Dividend rates may vary and past rates should not be considered as a guide to future rates. Declaration of a dividend and its level by the Credit Union will depend on a number of factors including the Credit Union's cost base, cost of capital and market conditions.

Despite being called a "dividend", dividends paid by credit unions are treated as interest income for tax purposes, and fall within the Personal Savings Allowance. Please visit this link for HMRC's guidance on the taxation of credit union dividends and how to include them on your Self Assessment tax return. Members are reminded that the dividend is paid gross and any tax responsibility lies with the member.

The Credit Union is required to report all dividends paid above a threshold, currently set at £250, in an annual report to HM Revenue & Customs.