ProfitShares Program: Q & A

Each year, you earn ProfitShares rewards—our way of sharing profits with our members. These rewards are deposited directly into your ProfitShares account.

How Your ProfitShares Are Calculated
Your annual ProfitShares allocation is based on:

• The interest you pay on qualifying loans
• The interest we pay you on non-registered savings and term deposits
• The dividends you earn on your ProfitShares balance

Most of our products qualify for ProfitShares. However, some—like registered products (e.g., RRSPs)—are excluded due to government regulations. These products typically offer competitive upfront rates instead.

How It Works

• Members are automatically enrolled to receive ProfitShares on qualifying products (unless they choose to opt out).
• Each year, your democratically elected Board of Directors determines the allocation rate—similar to a rate bonus or discount.
• Once your ProfitShares account reaches a certain balance—$2,500 for individuals or $10,000 for businesses/organizations—you’ll receive a cash payout of the amount above that threshold, deposited into your account in October.

ProfitShares: Your Share of Our Success
Each year, 20% of Synergy Credit Union’s pre-tax profits are returned to our members through ProfitShares—our way of saying thank you for doing your everyday banking with us.

Once your ProfitShares account reaches a certain balance—$2,500 for personal members and $10,000 for business members—you’ll receive a cash payout of the amount above that threshold, deposited directly into your account.

How ProfitShares Are Allocated
Your ProfitShares rewards are based on the business you do with us. Here are examples of how it works:

For Borrowers
If you have a $325,000 residential Super Mortgage at 3.25%, you’d pay approximately $10,562 in interest annually.
With a 2% allocation rate, you’d receive:
$10,562 × 2% = $211
That’s like getting a 0.07% interest rebate—lowering your effective rate to 3.18%.

For Savers
If you have a $100,000 term deposit earning 1.00% interest, you’d earn $1,000 annually.
With a 7% allocation rate, you’d receive:
$1,000 × 7% = $70
That’s like earning a bonus interest rate of 1.07%.

Share Dividend
If your ProfitShares account balance is $4,000 on December 31, you’d receive a 1% dividend:
$4,000 × 1% = $40

You’re Not Just a Member—You’re an Owner

At Synergy Credit Union, our members are also our shareholders. That means when we succeed, you share in the profits—through our ProfitShares program.

What Is ProfitShares?
ProfitShares rewards you for doing your everyday banking with us. The more business you do, the more you earn. It truly pays to be a member-owner.

Unlike traditional financial institutions, our profits stay local—reinvested in our communities and returned to our members.

How Your ProfitShares Are Calculated
Your annual ProfitShares allocation is based on:

• The interest you’ve paid on qualifying loans and mortgages
• The interest we’ve paid you on non-registered savings and term deposits
• A competitive dividend on your ProfitShares balance

Each year, your democratically elected Board of Directors decides how much of our profits are allocated to members. These allocations are added to your ProfitShares account.

When Do You Get a Cash Payout?
Once your ProfitShares account reaches a certain balance—$2,500 for personal members or $10,000 for businesses/organizations—any amount above that is paid out in cash to your account pack (chequing account) each year, typically in October.

If you haven’t reached the threshold yet, don’t worry—you’re on your way! The more qualifying products and services you use, the faster your ProfitShares balance grows.

In the event of a member’s passing, if their account is closed, the equity in their ProfitShares account becomes part of their estate. The executor of the estate will manage the necessary documents and handle the ProfitShares balance along with the member’s other Synergy accounts.

If a member chooses to close their entire membership and move to another financial institution, their ProfitShares will be paid out. Depending on the balance, the payout may be made immediately or held for up to one year before being released.

Tax Considerations

ProfitShares allocations may be considered taxable income, while cash redemptions are not. For guidance specific to your situation, we recommend speaking with your accountant or a qualified tax advisor.

Because ProfitShares are tied directly to Synergy Credit Union’s individual financial performance, they cannot be transferred to another credit union. That’s because you are a shareholder in Synergy—when we profit, so do you. That’s the heart of profit sharing.

How It Works
Each year, allocations are added to your ProfitShares account based on the business you do with us. Once your balance reaches a certain threshold—$2,500 for personal members or $10,000 for businesses/organizations—you’ll receive a cash payout of the amount above that threshold, typically deposited into your account in October.

So, rather than transferring your ProfitShares, you may be eligible to receive a cash payout once you reach the threshold.

What If You Close Your Account?
If you close your membership, your ProfitShares can still be redeemed—but only after a one-year waiting period. This delay exists because ProfitShares represent equity in the credit union, which we use to invest in the tools, programs, and services that benefit all members. The waiting period allows us to plan and manage this equity responsibly.

At Synergy Credit Union, our ProfitShares Program gives members a share in the credit union’s profits—just for doing your banking with us.

Each year, we allocate a portion of our profits to your ProfitShares account, based on:

• The interest you’ve paid on qualifying loans
• The interest we’ve paid you on non-registered savings and term deposits
• Dividends earned on your ProfitShares balance

As you continue to do business with us, your ProfitShares balance grows. Once it reaches a certain threshold—$2,500 for individuals or $10,000 for businesses and organizations—you’ll receive a cash payout deposited into your account pack (chequing account) typically in October.

Additional Considerations

• Members aged 69 or older may be eligible for special payout options—please check with your local branch.
• Non-profit organizations may qualify for annual payouts as well.