A Credit Union is a not-for-profit financial cooperative.
The only reason for it to exist is to provide low or no cost services that are a better deal for its members than exists elsewhere. In the case of B.D.C.U., one method we use to provide low rates on loans (while maintaining safety) is to pay an "Interest Refund." Although not guaranteed, B.D.C.U. has paid an "I.R." every quarter since 1975, with the exception of 6/30/81 to 12/31/82 when rates went "thru the roof." The Credit Union charges 12% A.P.R. on all loans (except share secured at 10.5%.) Each quarter the Board of Directors, after reviewing financial performance, determines if and how much interest refund should be paid. When they declare a certain percentage, that amount is multiplied times the actual loan interest paid by each member during that quarter and the resulting amount is deposited directly into the member's savings account the last day of the quarter.
Example: A member paid $450.00 in interest during the quarter. The Board declares a 30% Interest Refund. $450.00 x 30% = $135.00 deposited to member's account. Net Rate after this refund = 8.4% A.P.R.
*** The "Net" A.P.R. will vary based on "Interest Refund" percentage!
*** For more information on our "Interest Refund," ask any employee.
