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Q. What is 'Profit Sharing'?
A. Profit Sharing:
One of the most notable advantages of belonging to Synergy Credit Union is that we are member-owned. As shareholders, our member-owners have the ability to share in their credit union’s profits through our member profit sharing program called ProfitShares. It’s our way of saying ‘Thank You’ for doing business with us.
Why do we offer a profit sharing program?
As an organization, we have a choice, pay a portion of our surplus earnings as income tax to the Canada Revenue Agency or reduce the income tax we pay by establishing a member profit sharing program. This was not a difficult decision. We choose to invest in our members through our ProfitShares program, and reduce the income tax we pay.
How does the ProfitShares program work?
At year end, your democratically elected Board of Directors reviews Synergy’s corporate earnings and determines how much surplus is available to pay to our members through the ProfitShares program. There are four ways our members can benefit:
1. Loan interest rebates for borrowers
2. Deposit interest bonuses for savers
3. Dividends on the ProfitShares Account itself
4. ProfitShares Account cash payouts
How does the ProfitShares program benefit you?
Certain required ProfitShares Account balances qualify you to operate your chequing account package free of monthly fees. This could mean a substantial savings of up to $240 per year if you operate an ‘Unlimited’ chequing account package.
Your ProfitShares Account is not an account that you can draw funds from, however, it is your investment in Synergy Credit Union, and accumulates over the years as you continue to do your financial business with us. Your ProfitShares Account becomes a part of your financial portfolio, a ‘nest egg’ for the future.
In addition, the ProfitShares program helps us help you. Because of your ProfitShares investments, Synergy Credit Union has the capital needed to be innovative, now and in the future, for the development of industry-leading products, services and pricing.
How do you get your ProfitShares out?
You can apply to take out or cash in your ProfitShares Account under set guidelines.
• Seniors, age 69 and over, can apply to have their ProfitShares paid out over a 5 year period
• Non-profit community organizations may apply to have their entire balance paid out in cash or a portion thereof to allow the money to immediately be put to work in our communities
• Application can be made if the member’s account is closed out, upon the death of an account holder, bankruptcy or dissolution of an organization or company
There may be waiting periods that apply in these circumstances, your account manager can provide further details applicable to your specific situation.
ProfitShares…just one of the many reasons why it pays to be a member of Synergy Credit Union!
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