Credit unions are not-for-profit organizations, which means they don’t aim to make money for shareholders like banks do. Instead, their profits are returned to their members as dividends.
Think of dividends as a way for credit unions to share their success with those using their services. When you join a credit union, you’re not just benefiting from better rates and lower fees—you’re also eligible to receive a share of the credit union’s profits.
These dividends can help you grow your savings or reduce the cost of your loans over time. For instance, Alliant Credit Union, one of the largest in the U.S., paid its members a record $439 million in dividends in 2023. With over 830,000 members, the average dividend payout was around $529 per member, showcasing their commitment to sharing profits. In 2025, many credit unions are expected to offer even more generous dividends, making membership more valuable.
Credit unions typically pay dividends in the form of interest on savings or share accounts. Dividend rates for credit unions generally range from 0.10% to 2.00% annually, depending on the type of account and market conditions. For example, regular savings accounts might offer rates of 0.10% to 0.50%, while certificates of deposit (CDs) can provide higher rates, ranging from 1.00% to 2.00% or more for long-term deposits.
CU Station™ will help you compare various credit unions’ current rates and dividend history. This way, you can decide which credit union best meets your needs and goals.
