- Bargaineering - http://www.bargaineering.com/articles -

Founders Federal Credit Union Gives $10 Million

Founder Federal Credit Union, a credit union in Lancaster, South Carolina; will be giving $10 million [3] back to its members in the form of a bonus dividend. About half will go to depositors based on their interest earned and the other half will go to borrowers based on their interest paid. There’s no doubt that its 200,000 members are thrilled.

This illustrates the fundamental difference between credit unions and banks. Both pay out dividends and both pay them to their “owners.” The difference is that the depositors and borrowers are the owners of the credit union and that’s why it’s going back to them. Commercial banks pay dividends also, but the customer isn’t the owner. Shareholders are. Founders Federal has returned $30 million dividends in the past eleven years. This is just one of the reasons why credit unions kick ass [4].

Another warm and fuzzy moment? Bonuses for employees. $1,300 for full timers and $650 for part-timers.