How can I calculate my payout?
A table of our proposed dividend tiers and amounts are posted on the VIP Program Dividend
page. Please note the table is for informational purposes only and does not confirm VIP status nor does it guarantee a future payout of special dividends.
I'm a VIP; why didn't I receive a dividend?
Being a VIP doesn't automatically qualify you for a dividend. To be eligible for either dividend, you had to maintain the minimum required average daily balance, or paid the minimum loan interest.
I'm not a VIP. Does that mean I'm not important to Coastal?
All members are important to Coastal. As a credit union, our goal is to give back to our members when we have a financially successful year. Our success is driven by those members who have actively participated in our cooperative over the last year.
When are VIPs determined?
VIPs were determined at the beginning of January. Once a member is determined as a VIP, they will remain a VIP for the remainder of the year.
Why are VIPs only determined annually?
We want members to be able to enjoy the benefits of being a VIP for a sustained period of time, while ensuring that it is easy to explain and understand. Shortening the time period would mean that members could fall in and out of the program. Likewise, the behind-the-scenes complexity of the program makes an annual program much more favorable.
Is the dividend paid at the same time every year?
While an annual member payout is not guaranteed, it has been our practice to reward members each January. Looking ahead, we are going to spend 2016 performing a thorough analysis of all of our member rewards programs, including VIP. Our goal is to build a framework for a new, comprehensive member rewards program that we can announce and implement later this year. This may change how and when members receive rewards.
How can I ensure that I get a dividend again?
Dividends aren't actually guaranteed each year and will be determined by the overall financial performance of the credit union at the end of each year. However, we would like to continue rewarding our members. Continue choosing Coastal for your financial needs, to help increase your chances of receiving rewards in the future.
Once a VIP, willI always be a VIP?
Once you have been determined to be a VIP, you will remain a VIP for the rest of the calendar year. Each January, we will re-calculate who our VIPs are based on the number of withdrawals done from your checking account over the course of the year.
How can I ensure that I remain a VIP?
You must continue to perform 144 withdrawals from your primary checking account over the course of the current year to be a VIP again next year. An easy way to accomplish this is to use your Go Green checking account. The high yield on Go Green Checking is tied to performing at least 12 debit card transactions each month. If you are meeting the Go Green criteria, you will also meet the VIP criteria.
What is the significance of 144 withdrawals?
Our research shows that a member who is actively using Coastal for their primary checking relationship does at least 144 transactions each year. In fact, most of our active checking accounts are being used twice as often. The 144 withdrawal count also makes it very easy for members who use their Go Green account at least 12 times a month to qualify as VIPs.
Do I have to do at least 12 withdrawals every month to remain a VIP?
No, once you have been determined to be a VIP, you are a VIP for the entire year. To determine next year's VIPs, we will count the number of withdrawals you did throughout the current year. As long as you do 144 withdrawals in the previous year, you will be a VIP again in the following year. The date for determining VIP is on 12/31.
Why don't banks offer special dividends? Why don't other credit unions?
Banks are stockholder-owned corporations and are obligated to return excess earnings (in the form of dividends) to their shareholders, not their customers. Because Coastal is a cooperative and our members are both customers and shareholders, we can return excess earnings to our membership. Some other credit unions, and many other cooperatives, actually do offer special dividends in some form or another.
Why are there two dividend programs?
The programs are designed for members who are in two different financial life phases. While there is some overlap as people transition from their borrowing years into their wealth-building years, most people fall into only one category of financial need. It simply isn't a good service to our members - nor is it an effective use of our resources - if we try to incentivize members to open accounts they don't need.
Do my business accounts qualify?
No. Business Accounts, Custodial Accounts, and Trust Accounts are not eligible. Business checking is not factored into VIP eligibility. Likewise, business deposits and loans are not considered as part of either dividend qualification or payout.
What qualifies as a Wealth Management relationship?
A Wealth Management relationship is defined as a non-deposit investment product or service offered through CUSO Financial Services LP and non-deposit investment and insurance products and services previously sold through CUNA Brokerage Services Inc and CUNA Member CONNECT (excluding Basic Accidental Death and Dismemberment). Wealth Management does not include products and services sold through other joint marketing relationships with the credit union – e.g. MetLife, Providence Insurance Agency (an Ascension Company) or LifeRing Insurance. Investment and insurance products that count towards a Wealth Management relationship include AD&D Contributory, Bond, Brokerage MoneyMarket, Fee Based MAP, Fixed Annuity, Health, Long Term Care, Mutual Fund, Payout Annuity, Stock, Term Life, Traditional Life, Uninvested Cash, UniversalLife Variable Annuity, and Variable Universal Life.
Can you explain how average balance is calculated?
Deposit Bonus Dividends are based upon a member's year-end average daily balance. This is calculated as the average of the month-end average daily balances of all shares (non-business) listed under a single membership number for the previous calendar year.
What are the other benefits of being a VIP?
Aside from possibly earning a Loan Rebate Dividend and/or Deposit Bonus Dividend, VIPs will be eligible for exclusive discounts, special offers and other benefits throughout the year. We will communicate these to you via mail, email, online banking, in person when you visit or call. You can also check the VIP section of our website, where offers are updated regularly.
What is a member in good standing?
A member in good standing is any member who has at least $5.00 deposited in their Primary Share account. We call this amount par value, and it is your ownership share in the cooperative. It is important to maintain that amount, because members whose accounts fall and remain below par value for more than six months are subject to having their accounts closed.
In addition to being a member in good standing, in order to receive a dividend a member must also not have any loan charge offs or delinquencies.
What does VIP stand for?
We prefer to think of it as Very Important Participating Member. While the initials VIP typically mean Very Important Person, the term "VIP" itself is often used as a stand alone adjective to mean "important."
What about accounts that were closed?
A member must have an open account both when VIP status was calculated on December 31, as well as in January when dividends are paid. If the account was closed, the member is not eligible.
Why did Coastal change the VIP Program and the payout tiers?
VIP dividend payout tiers are subject to change each year. Most of the feedback we've received from members indicated that we needed to simplify the program, because the old structure was encouraging members to open unnecessary products simply to earn a payout. The new structure allows them to choose what's best for them. That means that a lot more people will qualify for a payout. We also had to strike a better balance between the amount we pay in loan rebates and the amount we pay in deposit bonuses. That required a restructure of the payout tiers. Some will get a smaller payout than in years past, some will get more, a many more will get one for the first time.