A Credit Union is a not-for-profit financial cooperative.
The only reason for a Credit Union 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 Boulder Dam Credit Union, one method we use to provide low rates on loans (while maintaining our safety) is to pay an “Interest Refund.”
Although not guaranteed, Boulder Dam Credit Union has paid an Interest Refund every quarter since 1975, with the exception of June 30, 1981 through December 31, 1982, a period of extremely high interest rates.
For loans subject to an Interest Refund, the Credit Union charges a flat rate of 8.00%. Each quarter the Board of Directors, after reviewing financial performance, determines how much of an 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 the 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 = 5.6% 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.