Sample member dividends paid to an individual member

Product	Balance as at Jan. 1	Annual average balance	Interest rate1	Member dividend paid	Member dividend rate2	Discount or interest rate adj.
Mortgage	$75,000		6.05%	$317.63	7%	- 0.42%
Personal loan	$10,000		10.50%	$73.50	7%	- 0.70%
RRSP term savings	$20,000		3.00%	$84.00	14%	+ 0.42%
Desjardins Funds		$28,000		$70.00	$0.25/$100
Total member dividend paid to member				$545.13

1. Annual interest rate in effect

2. Member dividend rate used: 7% of interest paid on loans, 14% of interest received on RRSP term savings and $0.25/$100 on the annual average balance of Desjardins Funds. These are the average rates 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.

In the example above, this caisse member with a $75,000 mortgage receives a member dividend of $317.63, which is equivalent to an interest rate discount of 0.42%, and is representative of the average rate paid by all caisses. This means the member benefits from a post-dividend rate of 5.63% versus the expected rate of 6.05%. For RRSP term savings, it is a rate hike.

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 business there. Thus, a member who had the four products illustrated in the table above would receive a total of $545.13.