Sample member dividends paid to a business member

Product	Balance as at Jan. 1	Interest rate1	Member dividend paid	Member dividend rate2	Discount or interest rate adj.
Business loan	$600,000	6.60%	$2,772.00	7%	- 0.45%
Line of credit	$70,000 3	6.25% 3	$306.25	7%	- 0.43%
Total member dividends paid to business member			$3,078.25

1. Annual interest rate in effect

2. Member dividend rate used: 7% of interest paid on loans, which is the average rate paid by the caisses. The rate for member dividends depends on the financial results of each caisse and the decisions made by the members at the annual general meeting.

3. Balance and average rates.

In the example above, this business member with a $600,000 loan receives a member dividend of $2,772, which is equivalent to an interest rate discount of 7% and corresponds to an interest rate discount of 0.45%. This means the business member benefits from a post-dividend rate of 6.15% versus the expected rate of 6.60%.

Since it is the volume of use of caisse products and services that determines the total of member dividends paid to members, members would benefit from concentrating their personal and professional business there. Thus, a business member who had the products illustrated in the table above would receive a total of $3,078.25. This amount would be even higher if the business owner conducted his or her personal affairs at the caisse as well.