Special Member Loyalty Dividend FAQs
Q: How was my Loyalty Dividend calculated?
Members who have specific service relationships with Logix and qualifying balances (as described below) on 12/31/14 were eligible for the Loyalty Dividend.
(1) Services: Members must have two or more services to qualify for a dividend. Eligible services include loan and savings products, such as Checking accounts, Credit Cards, IRAs, and Auto loans. The Share/Savings account is considered a service only if the average balance in that account (in December 2014) was $100 or greater. Members who do not meet the “two or more” services criteria qualified for a dividend if they had at least one of the following services: (1) Mortgage, (2) Home Equity Loan/Line, (3) Checking Account or (4) Money Market Account. Access services such as Online Banking and debit cards do not count toward the “two or more” service requirement.
(2) Balances: The Loyalty Dividend was based on the combined total of all Checking, Savings, Money Market, Certificate, IRA Certificate and loan balances each member had with Logix. We combined the daily average of deposit accounts maintained during the month of December with the loan balances members had outstanding as of December 31.
(3) Payment: We paid a $25 bonus for members with the service relationships described above and $10,000 in combined deposit and loan balances, $100 for members with $25,000, and $225 for members with $100,000.
For members who have more than one membership account, we added the balances for all accounts held by the primary account owner’s Social Security Number and posted the dividend into the account that has been opened the longest. Members must have a membership open date prior to 7/1/14 and be in good standing as of 2/1/15 to qualify.
Q: Which tax year is this payment valid for?
A: Your Loyalty Dividend will be reported on form 1099-INT along with other savings and deposit interest you earn in 2015.
Q: Why did you choose December 31 to determine my balances?
A: The December 31 date reflects the relationship each member had with the credit union at a specific point in time. We used the actual loan balance outstanding as of this date, and the average deposit balance members had in their accounts during the month of December.
Q: Will Logix pay a Loyalty Dividend every year?
A: As a not-for-profit credit union, we make every effort to return value year round, through better rates, lower fees, product and service enhancements, and improved financial strength. While we cannot promise to pay future Loyalty Dividends, we will monitor reaction to this year’s payment, as well as our ability to pay future bonus dividends while maintaining a strong financial position.