HARRISBURG, Pa. -- Pennsylvania State Employees Credit Union has announced a special dividend of almost $7.5 million. PSECU's board made the decision to return the funds to its members since its capital was already at levels that it felt were adequate--currently over 10%--according to Greg Smith, president of the CU. The dividend was posted to member accounts on Dec. 15. The dividend includes payments of 5% of the dividends earned and interest paid by members through Nov. 30, 2006, Smith said. The dividend will be paid to 301,582 members with the smallest dividend being $0.01 and the largest being $2,414, he added. PSECU opted for the special dividend since its rates were already "quite aggressive," Smith said. "In July we moved our money market rate to levels paid by the ING's, Citibanks, etc., of the world. Our current rate is 5.00% for a $500 minimum account. Our CD rates are equally competitive." Smith cited PSECU's semi-annual Raddon survey, which shows that in the loan area the CU is in the 100th percentile among the 600 credit unions surveyed by Raddon. Its deposit rates placed it in the 86th percentile. Data included in the survey was as of June 30, 2006, so the new pricing PSECU implemented in July should boost it up even higher on the deposit side, Smith said.
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From the December-20, 2006 issue of Credit Union Times Magazine • Subscribe!
PSECU Offers Nearly $7.5 Million Dividend To Members
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