The following notice to members has been received from NVCU, and I’ve been asked to share it with readers. – Kenneth
North Valley Credit Union pays a cash earnings distribution to its members.
North Valley Credit union had a very successful year in 2019 and accordingly, the Board of Directors have authorized a cash earnings distribution (formerly called patronage) to its members. A total of $ 100,000.00 was approved for distribution.
If you are a member of North Valley Credit Union and had loans or deposits during the calendar year you received a refund of loan interest and bonus interest on your savings as follows:
Refund of loan interest at the rate of — 8.60%
Bonus interest on your deposits at the following rates:
- Maximizer accounts 10.00%
- Youth accounts 20.00%
- Term Deposits 20.50%
- Plan 24 25.00%
- Special Savings 25.00%
The cash distribution was posted to member accounts on September 22nd and these items will show up on your statements under two special codes – PRD for bonus deposit interest and PRL for loan interest refunds.
All bonus interest paid to our members will be included in your T-5 slips that will be sent out following the end of the year and will be treated as interest earnings for the 2020 taxation year. Loan interest refunds will not be taxable if the loan was for a non-tax deductible purpose such as a house mortgage or a vehicle purchase. However, if you are planning to claim the interest on your loans as a deduction for tax purposes then you must reduce the amount of your deduction to the actual amount you paid after taking into consideration the refund provided to you.
On behalf of the Board of Directors, management and staff we wish to thank everyone who did business with our credit union in 2019. By supporting the credit union, we are able to continue to do good things in the communities we serve and reward our members in a more tangible way as described above.
CEO & General Manager