A Dividend is the distribution of profits to its shareholders. In the terms of a Credit Union, the members are the share holders.
A Credit Union must make minimum contributions to their reserves and are then able to use additional funds to distribute these funds to members in the form of a dividend.
Dividends are paid based upon the amount of shares held by a shareholder.
For Credit Unions they are based upon an average share holding in the qualifying year and is usually paid in the following year.
A Dividend paid in 2019 will be the calculation of the average shares from October 2017 to September 2018, it is not based upon the shareholding at yearend. A daily average balance is calculated and the percentage of dividend paid on those shares. This must be approved by the membership at the Annual General Meeting.
If you're a member of Halton Credit Union, are over 18 years of age and you have at least £1 in your savings (Share account), then, yes, you are.
Unlike many companies who issue shares, the number of shares held do not dictaate how much of a say you have over the actions of the company. For Credit Unions it is one account(member) one vote. This means that all members are equal within a Credit Union, all members are able to attend the Annual General Meeting (AGM), ask questions, stand for election to the Board (There are terms and conditions for being able to sit on the board), and vote on all matters at the AGM.
All income is taxable, although, there may be some tax free allowance.
Your dividend is paid gross of tax, so you should ensure you meet any taxation responsibilities that may be due. Halton Credit Unions financial year runs from October to September and we are required to report dividend payments in excess of £250 to HM Revenue and Customs.
This information is correct as of November 2020, but may be subject to change, please check with Halton Credit Union, HM revenue and Customs or speak to your accountant, if you have one.
Name Change
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From Tuesday 1st October, Halton Credit Union will be trading as Beacon Savings & Loans, read on to see why we are changing our name.
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Why has Halton Credit Union changed its name
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Halton Credit Union is now trading under the name Beacon Savings & Loans
In 2019, Halton Credit Union extended its common bond i.e. the thing that links us all together as members, to cover a larger area. Formerly members had to live or work in Halton but with the extended common bond people who live or work in the whole of Cheshire, plus the adjacent WA postcodes are now able to join our credit union.
Therefore, it was envisaged that having a geographical place name, Halton Credit Union, would hinder our expansion as location names do not travel well. The need for member connection is vital and any potential members in our extended common bond may not be familiar with the location, Halton, therefore it would it not evoke a ‘sense of belonging’ to them.
Additionally, individuals in these other regions may be unaware that they can join.
Therefore, the most important thing was to make our credit union relevant to the members, both potential and existing and to the communities in which we will operate.
The new name ‘Beacon’ emotes reliability and security and ‘Savings & Loans’ gives clarity to what we do – it is clear and straightforward. The name is also easy to remember and recognise and will appeal to a more diverse range of potential members, avoiding terms that might feel exclusive or limiting, such as the place name Halton.
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Who chose the name Beacon Savings & Loans?
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Our existing members inadvertently helped to choose the trading name Beacon Savings & Loans
A working group shortlisted several suitable and available names. Existing members were then asked to complete a survey about their credit union, without being informed of its true purpose. Their responses were used to help select the new name. The survey was conducted blind to ensure that the chosen name would reflect the essence and values of the organization, rather than simply being selected based on popularity.
The new brand is fresh and modern and as ‘Beacon Savings & Loans’ feels more authentic as it accurately reflects some of the members comments:
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Who we are: ‘a beacon of light’ for those that need our services, a ‘lifesaver’ who people can turn to and a ‘light at the end of the tunnel.’
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What we do: ‘provide a safe place for people to save as well as offer affordable loans to members.’
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Does that mean Halton Credit Unions brand/logo change?
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The new branding will now feature a modern, fresh design with a more professional appearance.
Our original brand is also outdated and not really what we are about as an organisation. The logo was designed over 20 years ago and incorporated a pound sign – today HCU is less about money and more what we can do for members.
The recent changes align with our mission which is... ‘People and Planet before Profit.’ At Beacon, we aim to shine a light on the changes needed in our communities, but much more than that... we also want to actively participate in creating the solutions
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Does that mean that you are no longer a credit union?
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We will also be a credit union, we are proud to be a credit union
When you know what a credit union is, you know they are the best thing. Many people do not know what a credit union is and the name can feel misleading to some people. Whilst we are a union, given that we all come together for the greater good of everyone involved, we're not a trade union. Credit unions are a part of the cooperative movement, meaning that we are owned by our members. In fact we are a Savings & Loans cooperative.