So PCCU gives an annual dividend but you cannot tell me what the rate will be for next year?

A question that comes up occasionally is what is the different between PCCU’s dividend and the bank offering an interest rate on saving accounts. In the simplest terms Credit Union is owned by the account holders, you have savings which are shares in the business, when the business is successful like PCCU has been for a number of years – you the owners share the profits.

The difference with a high street bank’s savings account is that there is an advertised rate of interest on any savings. However as pointed out by the FCA who regulate banks, building societies and Credit Unions, these interest rates can be decreased as long as the customer is given notice, usually with a 2 month period; so not guaranteed.

At the end of every year, after providing for reserves and paying expenses, the dividend rate is proposed at the AGM. The profits go back to our account holders in the form of a dividend.

This ensures that any profit that is made by PCCU stays within our community and does not go to faceless external shareholders. So it does not matter whether you have £5.00 or £5,000.00 with PCCU or how often you use your account you will get the same rate of dividend as everyone else.

How do we compare

According to the ‘Money Statistics February 2022′’ the average interest rate for an instant access savings account was 0.11% in January 2022. For a
cash ISA, the rate was 0.19%, down from 0.35% a year ago. We cannot tell you what the dividend will be next year; however we can highlight what it has been in previous years.

Year	Dividend on adult account	Dividend on Young Savers account	Loan Interest Rebate
March 2023	2%	2%	15%
March 2022	1.5%	1.5%	10%
March 2021	1%	1%	6%
March 2020	1%	1%	2%
March 2019	0.75%	0.75%	0.75%
March 2018	0.75%	0.75%	0.75%
March 2017	0.75%	0.75%	0.75%
March 2016	1.25%	2.5%	1.25%