2017 Relationship Dividend FAQs

Logix is proud to issue, for the fifth year in a row, a Relationship Dividend to qualifying members. Please reference this letter to members from our CEO, this press release, or this announcement post for information about the dividend payment.

Q: How was my Relationship Dividend calculated?

A: Members are eligible for the Relationship Dividend if they joined Logix prior to July 1, 2016, their accounts are still open as of February 14, 2017, and they have specific service relationships and qualifying balances (as described below) on December 31, 2016.

1. Services: Members must have two or more eligible 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 2016) was $100 or greater. Members who do not meet the “two or more” services criteria qualify for a dividend if they have 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” services requirement.
2. Balances: The Relationship 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 to members with the service relationships described above, and with $20,000– $50,000 in combined deposit and loan balances; $0.50 per $1,000 of balances for members with $50,000– $250,000 in combined balances; and $150 to members with more than $250,000 in combined balances. 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 applicable?

A: Your Loyalty Dividend will be reported on form 1099-INT along with all savings, MMA, checking, and certificate dividends earned in 2017.

Q: Why did you choose December 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 December 31, and the average deposit balance members had in their accounts during the month of December.
 

Q: Will Logix pay a Relationship 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 Relationship Dividends, we will monitor our ability to pay future bonus dividends while maintaining a strong financial position.

Q: Why is Logix paying out less in Relationship Dividends this year compared to last year?

A: Logix is investing a significant amount of money this year in systems and processes to ensure protection of member data, and reduction of fraud. This investment is critical to fulfilling our duty of ensuring the safety of member data, as well as the assets of the Credit Union and our members.