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Newbridge Credit Union members to receive dividend

Newbridge Credit Union.

Newbridge Credit Union.

Permanent TSB has announced that members of Newbridge Credit Union will receive a dividend of 1.5%

In a statement, the bank which took over the troubled credit union in November, said that the approximately 32,000 account holders would get a dividend in April.

However, unlike a dividend from other credit unions, the payment will be subject to DIRT.

It’s the the first such dividend payment made in the past three years and recognises, PTSB said, “the support of members of the Credit Union during a period of significant unrest and uncertainty”.

The dividend will be paid on all qualifying accounts for 12-month period up to March 2013.

Interest will be calculated on same basis as previously applied in Newbridge Credit Union and lodged directly to members’ accounts in April.

A spokesman for PTSB said it was not yet known how much the payment would cost the bank, adding that it “will be dependent on the qualifying balances at the end of March”.

It is a one-off payment.

“This payment is being made to recognise the loyalty of members during a period of uncertainty over the past three years but it is Permanent TSB normal practice to pay interest on deposit accounts,” the spokesman explained.

Jimmy Nolan, appointed by PTSB Interim Head of Operations at Newbridge Credit Union explained that it “represents our commitment to the members of NCU”.

Local TD Martin Heydon welcomed the move saying that it “it is fair for the members who remained loyal to the Credit Union through thick and thin, especially when there was no information coming during the time of the Special Manager.”

And he added that the payment would be “very welcome for Newbridge and a cash injection for the town and its businesses.”

Meanwhile, Droichead Nua Credit Union Founding Group which aims to establish a new credit union in Newbridge says it is in talks with two financial institutions, and hopes to be in a position to make an announcement by the end of February.

Willie Crowley, speaking on their behalf, said it could be be operational very soon afterwards.

 

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