Interest Rates, Fees, and Dividends
INTEREST RATES
Why Is Interest Charged?
Interest is the charge levied for the use of a loan. Interest rates must be high enough to pay operating expenses and to provide a reasonable return to the savers in the form of dividends, yet low enough to make BCU one of the best places to borrow money.
Maximum Interest You May Be Charged on a
Loan
The maximum legal interest that a credit
union may charge at this time is 18% per
annum. The BCU Board of Directors
establishes current interest rates based on
local market and operating needs of the
credit union. Changes in interest rates
will be announced by the credit union
office. In most cases BCU interest rates
are better than other lending institutions.
Fees that May Be Charged
There is a $10.00 processing fee for all approved loans. This fee is added to the principle of the loan when the loan is processed. If your loan application is not approved, there is no fee. If you have a secured loan (vehicle), there is a $22.00 lien filing fee which must be paid at the time the approved loan is processed. A dormant account fee of $5.00 per year will be charged if share balance is below $100.00 and there has been no activity by the member.
DIVIDENDS
Dividends are credited to all members with a share balance of at least $5.00.
Dividends are computed using the daily balance method.
Dividends are paid quarterly and posted on the last day of each calendar quarter.
Dividends are computed at a comparable rate of interest with other types of savings organizations in our area.
Credit Union dividends are subject to income tax. A 1099 statement will be mailed to you showing the amount of dividends credited to your share balance during the previous year. 1099 forms will only be sent for amounts of $10.00 or more.
INSURANCE OPTIONS
Credit Life Insurance
Available to BCU members at a low cost, Credit Life pays off the principal balance of a loan in the event that a member dies.
Credit Disability
Available to BCU members at a low cost, this insurance makes loan payments if you are off the job due to total disability. The insurance takes effect after you have been off work for at least 30 days.