Coastal Federal Credit Union Rewards Members with $2.1 Million Payday
- Created on Monday, 26 January 2015 13:33
- Written by Joe Mecca
This morning, Coastal Federal Credit Union issued more than $2,100,000 in special dividends, earned by members through its VIP Program. The Loan Rebate and Deposit Bonus Dividends were shared among nearly 9,100 members, and ranged from $100 to $1,000.
This year’s payout was the largest in the four year history of the program, both in dollars and in the number of members who benefitted. To date, Coastal has issued more than $7.1 million in VIP dividends.
While today’s $2.1 million dividend payout is sizable, the credit union is also able to quantify an additional $15.4 million in member benefits throughout the year, including: savings on loan rates and origination fees, higher yields on deposits and checking accounts, and reduced or forgiven fees.
“Member giveback is a core component of who we are as a cooperative,” said Chuck Purvis, Coastal’s President and CEO. “Whether it’s issuing a large dividend or simply saving members a few dollars every day, Coastal’s purpose is creating financial win-win situations for our membership. We focus on providing consumer-friendly products and services, and when we’re successful, we can share even more with the members whose active participation in the credit union drives that success.”
The VIP program was designed to reward members who have their primary checking account at Coastal. Members qualified as VIPs by performing 144 withdrawals from their Coastal checking accounts during 2014. VIP members then had the opportunity to earn Loan Rebate Dividends and Deposit Bonus Dividends by also having either two or more loan types, or two or more deposit types. Loan Rebates were based on interest paid during 2014, while Deposit Bonuses were determined by average balances.
Credit Unions Show How Co-Ops Benefit Their Members
- Created on Friday, 23 January 2015 13:12
- Written by Emily Crone, NerdWallet
Cooperatives, also known as co-ops, take many forms, from credit unions to retail shops to housing communities. But the mission of providing services to members at a low cost remains a common theme for all.
What is a cooperative?
The concept of a cooperative enterprise has been around in America for centuries. Benjamin Franklin organized one as a Philadelphia insurer in 1752. Essentially, a co-op is a member-owned and -operated organization run for the benefit of members, customers or some other group. A co-op business typically shares profits or earnings with its members, either through rebates or reduced-cost services.
Another trademark of co-ops is that they are usually overseen by boards of directors elected by members, who also control organizational direction.
“Cooperatives are common in the health care, retail, agriculture, art and restaurant industries,” according to the U.S. Small Business Administration. Credit unions are one of the most ubiquitous forms of American co-ops, with roughly 6,500 of these nonprofit organizations serving about 100 million members, according to Credit Union National Association data.
Benefits of co-ops
One principal goal of some co-ops is keeping prices reasonable, while other objectives can include helping members obtain needed resources or complete complex tasks. For organizations like Coastal Federal Credit Union, that often translates to low-rate loans, credit cards and mortgages as well as inexpensive services such as checking and saving.
“Unlike banks, credit unions return surplus income to their members in the form of dividends,” according to the National Credit Union Administration, a federal agency that oversees the industry. Because they’re member-owned and -run, they’re often more responsive and flexible in meeting consumer needs compared with big banks.
Some co-ops deliver other benefits. For example, the Raleigh, North Carolina-based U.S. Tobacco Cooperative helps farmers process, store and market their crops. Some retail co-ops like Recreational Equipment Inc., better known as REI, let the public shop in their stores but provide lower prices, rebates or discounts to members only.
Housing cooperatives feature a different set of benefits. The National Association of Housing Cooperatives lists some of these perks as “personal income tax deductions, lower turnover rates, lower real estate tax assessments (in most areas), controlled maintenance costs and resident participation and control.”
Here are some other industries in which co-ops are commonly found:
- Telecommunications and electric utilities About 900 nonprofit co-ops like Wake Electric in Wake Forest, North Carolina, provide electric services to 42 million people in 47 states, according to industry data. More than 1 million Americans get telephone services through 260 co-ops like Tricounty Telecom in Belhaven, North Carolina.
- Child and health care Tens of thousands of parents have banded together to set up babysitting co-ops around the nation and inexpensively solve an ever-present problem for families with preschoolers. Group Health Cooperative in Seattle and HealthPartners, started as a co-op in Minneapolis in 1957, are among the largest providers of health services in their regions.
- Group purchasing From grocers and other retailers to farmers, co-ops have been formed to help supply members with needed inputs, equipment, supplies and wholesale merchandise.
Co-ops come in many different forms and span a wide variety of industries and endeavors, but like credit unions, they’re all focused on the common benefit of members.
Emily Crone, NerdWallet
Coastal Night with the Carolina Hurricanes: Game 3
- Created on Tuesday, 20 January 2015 10:03
- Written by Joe Mecca
Coastal Federal Credit Union has teamed up with the Carolina Hurricanes to bring you one more game in our Coastal Night with the Hurricanes series!
Coastal members, family & friends can purchase these specially priced tickets for the Sunday, March 29th, Hurricanes vs. Boston Bruins game and support Big Brothers, Big Sisters of the Triangle . Don’t miss out on this exclusive offer!
To purchase tickets through this special opportunity, visit: www.CarolinaHurricanes.com/Coastal
Enter special offer code: Coastal
Tickets are available on a first-come, first-served basis and are subject to availability. Offer expires at 11:59 p.m. on Mar. 28.
$3 from each ticket will be donated to Big Brothers, Big Sisters of the Triangle.
Help Us Share the Gift of Reading
- Created on Friday, 09 January 2015 05:49
- Written by Joe Mecca
Did you know that childhood access to books is a driving force behind language development and academic readiness, yet more than half of children in low income households have no books at all?
That’s why Coastal has partnered with Book Harvest to host a book drive to help gather much-needed books for children in the Triangle.
We invite you to drop off new or gently used children’s books at your Coastal branch location any time during the week of January 12-16. Your generous donations will be distributed to community centers, afterschool programs and nonprofit organizations throughout our community.
For more information about Book Harvest, visit www.bookharvestnc.org.
Thank you for your support of this valuable community service.