We share our profits with you, the causes you care about, and the communities you live in. To date, we’ve distributed over $80 million to our Members through our Profit Sharing program.
—John, Member since 1996
DUCA has paid a large portion of its profits back to our Members in the form of Class A Bonus Shares* since 1999 through our "Get More Profit Sharing" program. Shares are based on the interest Members paid and earned in the previous calendar year. Every year, the Board of Directors sets the level of new Class A Bonus Shares issued, at its discretion.
Class A Bonus Shares are paid annually. Everyone who joins DUCA becomes a Shareholder/Member and may therefore be eligible to earn Bonus Shares.
The total amount of Shares paid to Members, including both Patronage and Dividends, is based on our performance as a credit union throughout the year and is determined by the Board of Directors at the end of our fiscal year.
Shares cannot be redeemed in the year of issue. They can be redeemed in subsequent years as follows:
*Bonus Shares are part of our equity as a credit union. Redemption of these shares is only possible up to a legal limit of no more than 10% of the total Shares outstanding for all Members in any one year, on a first-come first-served basis.
Profit sharing and your loan and mortgage interest:
Profit sharing and your RRSP interest:
Profit sharing and your RRIF interest:
Profit sharing and your Savings and Term Deposit interest:
On February 26, 2021, the Board of Directors was pleased to declare a dividend of 4.25% on Class B Series 4 shares and 3.00% on Class B Series 1 shares. Payment of the dividends was made on March 1, 2021.
The amount of the dividend on Class B Series 4 shares was based on the number of days between the date the shares were issued to Members and December 31, 2020. For Class B Series 1 shares, the dividend was based on the Class B Series 1 shares that Members held as of December 31, 2020.
Class A shares are accumulated by our Members based on the amount of interest earned or paid during the year. A profit-share dividend of 2.00% was declared on all Class A profit-sharing shares held by Members on December 31, 2020.
We are delighted to report that over DUCA's history and including the current year's declaration, a total of $93.6 million of profit share distributions and Class B dividends have been returned and/or paid to our Members.
Can I buy more Bonus Shares?
No, you can’t. Bonus Shares are distributed to Members based on the amount of interest paid and/or received during the previous calendar year. Shares cannot be purchased.
What can I do with my Shares?
Class "A" Bonus Shares offer you lots of options and value. For example, if you used the First Time Home Buyers Plan to borrow from your RRSPs to purchase your first home, the Bonus Shares can represent at least a part of your minimum annual re-payment. In general, you can make your Bonus Shares work harder for you by transferring them into a Share RRSP account.
Why do I have to pay tax on my Shares?
In many cases, there are ways you can avoid or defer paying tax on Bonus Shares. Please refer to our Tax Implications information.
Why do I have to wait to cash my Shares?
We encourage you to keep your Bonus Shares and let them grow. With RRSP Share accounts and competitive annual return, keeping your Shares is generally more beneficial than cashing them. Also, since Shares are part of DUCA's capital, redemption must be controlled. The redemption schedule is discussed in the Class "A" Bonus Share Features.
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