Who Is Eligible to Receive Dividends?

California Community Credit Union (CACCU) exists to serve its members by offering financial services that are both beneficial and accessible. A unique benefit of being a member of CACCU is the potential to earn dividends on certain types of accounts. But who exactly is eligible to receive these dividends? Let’s explore the requirements and opportunities available to our members.

Understanding Dividends

Dividends are essentially a way for CACCU to share its earnings with its members. Unlike banks, which distribute profits to shareholders, credit unions like CACCU return earnings to members through higher savings rates, lower loan rates, and periodic dividends. Dividends are paid on eligible accounts based on their balances and the credit union’s financial performance.

Membership Is the Key

To be eligible for dividends at CACCU, you must first be a member. Membership typically requires:

• Opening a share savings account with a minimum deposit, which represents your share in the credit union.
• Meeting CACCU’s membership eligibility criteria, which may include living, working, or worshipping in a specific area or being part of a designated group.

Eligible Accounts for Dividends

Not all accounts at CACCU earn dividends. Here are some of the accounts that typically do:

1. Share Savings Accounts:
   • Most members open this account to establish membership.
   • Dividends are calculated based on the account’s daily balance and are credited monthly or quarterly.
2. Money Market Accounts:
   • These accounts often offer higher dividend rates compared to standard savings accounts.
   • A minimum balance is required to earn dividends, and rates may increase with higher balances.
3. Certificates of Deposit (CDs):
   • CDs typically offer fixed dividend rates over specified terms.
   • The longer the term and the higher the deposit, the better the rates.
   • Depending on the market, a credit union may offer a promotional special, providing a shorter term with a higher percentage of return. 
4. IRA Accounts:
   • Individual Retirement Accounts (IRAs) are another type of account eligible for dividends, helping members grow their retirement savings.
5. Special Accounts:
   • CACCU may also offer specialized accounts, such as holiday savings or youth accounts, that earn dividends.

Maintaining Eligibility

To continue receiving dividends, members must:

• Maintain the required minimum balance in their dividend-earning accounts.
• Ensure their accounts remain in good standing without any delinquencies or violations of membership agreements.

Factors Affecting Dividend Rates

CACCU determines dividend rates based on several factors:

• Financial Performance: The better the credit union performs, the more it can return to members.
• Market Conditions: Rates may fluctuate depending on economic trends and market conditions.
• Account Type and Balance: Higher balances and certain account types may qualify for higher dividend rates.

How Dividends Are Paid

Dividends are typically credited directly to the eligible account on a monthly or quarterly basis. Members can monitor their earned dividends through online banking, account statements, or by visiting a branch.

Not Yet a Member? Join Us Today!

If you’re not yet a member of CACCU, now is the perfect time to join and start enjoying the benefits, including the opportunity to earn dividends. Visit caccu.org or stop by your nearest branch to learn more about membership and account options.

At California Community Credit Union, we’re committed to helping you achieve your financial goals while sharing our success with you. Open an account today and let your money start working for you!