2016 Logix Loyalty Dividend FAQ

Q: How was the 2016 Logix Loyalty Dividend calculated?

Members who joined prior to 7/1/2015, whose accounts are still open as 2/24/2016, and have specific service relationships with Logix and qualifying balances (as described below) on 12/31/15 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 2015) 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: The credit union paid a $25 bonus for members who have the service relationships described above and between $15,000 - $25,000 in combined deposit and loan balances. Members who had more than $25,000 with Logix as of 12/31/15 received $1 per thousand of combined deposit and loan balances, up to a maximum of $250. For example, members with $40,000 in combined balances received $40. Members with $150,000 received $150.  

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.

Q: For which tax year is this payment valid?

A: Your Loyalty Dividend will be reported on form 1099-INT along with other savings and deposit interest you earn in 2016.

Q: Why did Logix choose December 31 to determine my balances?

A: Since balances increased throughout the year, the year-end date provided the best opportunity for the highest number of members to maximize their balances, and their Dividend payment.

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 our ability to pay future bonus dividends while maintaining a strong financial position.

TOPICS: Logix News

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