Credit Union Dividends

Oasis1974

Hello just a quick question i'm trying to find out when the Credit Union pays out its yearly dividends? Its Sunday so there closed obviously and i'm thinking on transferring my funds there to a bank. Waiting till the dividends is payed out before i do it. Its the end of the year but not sure when or is it different to each Union?
Thanks.

on_my_oe

We have never had a dividend with our credit union, been with them three years.

peppa 1986

If the credit union is paying a dividend, it is paid after the Agm. The Agm can not be held until the central bank has approved the accounts. Agms usually held nov/dec

Oasis1974

Thanks just read somewhere its Nov/Dec may as well hang on till the Agm is held and see what happens.

You don't have to wait until the Dividend is paid. You can transfer funds out of the account during the year and have very little by the time AGM arrives. Your Div is based on the average balance you had in the account during the year, and you will still get your dividend regardless of the balance at AGM time. Usually AGM's held early December, and dividend paid the day after the AGM

I would have thought your funds would be more use to you in a CU than in a Bank!

I have to agree with the previous post and think that any funds you have in the CU would be better there than in any of the other major banks, especially if you wish to take out a loan in the future.

Oasis1974

Thanks for the further reply's Actually i'm asking because i have 10k in there since 2005 and the money has never been touched. I was in maybe a year ago to see what dividends had accrued over that time frame and it was pretty small. I moving from my current bank BOI to PTSB in march i think when my 70k yearly fixed term deposit account matures. The AER is pretty bad with BOI so the move is a good idea i think. I have 25k in my current account with BOI so the plan is to move all my money to PTSB and set up a Savings account with them. I'm aware of all the ramifications with the move and thankfully i'm luckily enough to have no loans or mortgage to pay off at my age.

badgerbroc11

Oasis1974 wrote: »

I'm aware of all the ramifications with the move and thankfully i'm luckily enough to have no loans or mortgage to pay off at my age.

Check with your credit Union first about is life saving and death benefit insurance policies.

Most, but not all credit unions provide this. Depend on when you put in the 10k this could be covered fully by life savings insurance for another 10k upon your death. You may also be covered by the death benefit insurance which pays between 1,200 And 2,600 depending on the Cu. Most cus cover is 1950.

So your 10k could be worth 22,600 to your next of kin with out being subject to dirt tax on interest income. Not to many deposit accounts giving that kind of return!!

Yorker

badgerbroc11 wrote: »

Check with your credit Union first about is life saving and death benefit insurance policies.

Most, but not all credit unions provide this. Depend on when you put in the 10k this could be covered fully by life savings insurance for another 10k upon your death. You may also be covered by the death benefit insurance which pays between 1,200 And 2,600 depending on the Cu. Most cus cover is 1950.

So your 10k could be worth 22,600 to your next of kin with out being subject to dirt tax on interest income. Not to many deposit accounts giving that kind of return!!

but it is subject to dirt now?

No…….. If its proceeds of an insurance policy, then DIRT is not relevant.

See the following extract from CreditUnion.ie

Life Savings Insurance

Life Savings Insurance is payable on the death of the eligible member, subject to policy terms and conditions.

All credit union members are eligible for this insurance.
The insurance benefit payable will be a proportion of the deceased members closing savings balance.
The size of the payment also depends on the age of the member at date of death and will decrease as the member gets older.

In simple english this means that the insurance payout is higher for a younger person saving early than for an older person saving later. Ask your CU for details