Business Services

Posted on: Sep. 27, 2009

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Q. How can a corporation access more profit shares?

A. Synergy Credit Union pays ProfitShares to all our members, including corporations, based on the business they do with us. 

How much you receive will also depend on the surplus earnings of Synergy each year. The ProfitShares Program allows members to share in Synergy’s surplus earnings through allocations to their equity account. Calculation of your ProfitShares allocated is based on the interest you’ve paid us on loans, interest we’ve paid you on savings and term deposits, and a competitive return on your ProfitShares investment (the current balance in your ProfitShares portfolio earns dividends too!). The decision as to how much is allocated for ProfitShares is made by your democratically-elected Board of Directors.

For example, for ProfitShares in 2008, Synergy allocated (bonused) 7% on interest received by savers. The total allocation to savers was $964,000. For example, if a member earned $3,000 in interest in 2008, we would allocate $210 (7% x $3,000) in member shares to that member.  On a 4.0% term deposit, this would represent a bonus of .28%. 

If the ‘access’ in your question means how can you take out or cash in your ProfitShares account, there are established criteria under which payout can occur:

Corporations rnay request a payout of their ProfitShares, due to the following conditions:

• dissolution of the organization or company
• the corporation closes all accounts (if the ProfitShares balance is more than $100, payout of ProfitShares will take place after a 3 year waiting period is completed)

As a Synergy Credit Union member/owner, you are growing your nest egg, just by conducting your financial business with us. “Profit sharing” is one of the many benefits that distinguishes us from banks.

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