A 20 Year Tradition Continues with our 2016 Loyalty Dividend

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In the last week of December, I take a break from my usual routine. There’s time for home-cooked breakfasts, afternoon tea, and long visits with family and friends. This quiet intermission before jumping into a busy new year is a gift I give to myself.

Hanscom FCU is giving gifts as well. For the 20th consecutive year, the board of directors has approved a Loyalty Dividend. On December 31, Hanscom FCU will distribute an extraordinary payment of 2% of dividends earned and interest paid on most consumer loans.

The Loyalty Dividend is a tangible result of a successful year. As a result, the extra value will be returned to members in the December 2016 statement. It’s one more way we look out for our members.

Where does this “extra value” come from?  When you open a new checking account, use your Hanscom FCU Credit Card, or transfer savings to a CU Thrive account, you create value that benefits you and your fellow members.

When you refer a new member who opens an account, takes out a loan, or uses a service we offer, the credit union’s value increases. And that allows us to continue to reward loyalty with better savings rates, lower loan rates, and fewer fees.

We’ve got you covered with tools to help you preserve and grow your assets. I hope the year ahead brings you experiences and events that create value to other parts of your life as well.

Have you read the Chairman’s Letter? It’s got tons of information on what we accomplished in 2016 and a preview of what’s coming in 2017. 

Loyalty Dividend FAQ

Who will get a Loyalty Dividend?

Members who in good standing will receive a percentage of year-to-date interest paid and dividends earned on eligible consumer loan and savings accounts. 

What is a member in good standing?

A member in good standing must have an open account, at least $25 in a prime share account, be current on all loans and must not have caused the credit union a loss.

What accounts are eligible? 

Savings accounts: prime share, secondary share, holiday and vacation savings, money market, higher yield savings, regular and IRA certificates, and CU Thrive. Consumer loans: home equity loans and lines, Platinum credit lines, vehicle loans, reserve lines of credit, share secured loans, and personal loans and lines. 

Where can I find my Loyalty Dividend?

Loyalty Dividends are posted to your primary savings account on December 31, 2016. Look for a special entry in your online account history or your statement. It will be labeled “Extraordinary Dividends” and there will be one for each eligible account. For IRA accounts, the dividend will be posted to each individual account.

Where do the funds for the Loyalty Dividend come from?

The Loyalty Dividend is funded from earnings above and beyond those needed to safeguard accounts, pay regular dividends, and operate the credit union.

How does the Board of Directors decide whether to approve a Loyalty Dividend?

Our tradition is to return funds to the membership when reserves and capital are determined to be in excess of what is necessary to protect member accounts.

 Is the Loyalty Dividend paid every year?

The Board of Directors determines whether to approve a Loyalty Dividend each year, based on reserves and capital. Loyalty Dividends are a result of membership participation throughout the year along with prudent management of credit union assets.

Will I have to report my Loyalty Dividends on my taxes? 

Yes. Your dividends will be included in your 1099-INT form after the disbursement of the Loyalty Dividend. 

Do you still have questions about the program? Call us at 800-656-4328. 

Read the Chairman's Letter


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Hanscom Federal Credit Union
Hanscom Federal Credit Union

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