Dividend Rates

Past Dividend Rates

As a not for profit organisation, we share a percentage of our profits with our members. This is known as a dividend. Credit unions keep their money within a community of credit union members because we do not need to pay profits to external shareholders. The remaining profits are re-invested in the business to provide a better service to our members. 

We offer a competitive return on an instant access savings account. Also you may wish to consider saving with London Community Bank on the basis of us being an ethical and local alternative when compared to banks, building societies and other financial providers. 

The dividend rate is agreed at our annual AGM which is normally held in February. The dividend is paid against the savings balances held on each members account between 1^st October and 30^th September – our financial year. The dividend for 2022 was paid on the 19^th April 2023. 

Here are the dividends we have paid to our adult and young saver members over the past three years:

Dividend rates may vary and past rates should not be considered as a guide to future rates. Declaration of a dividend and its level by London Community Bank will depend on a number of factors including its cost base, cost of capital, regulatory requirements and market conditions. 

Members are reminded that the dividend is paid gross & any tax responsibility lies with you, the member. Please visit the following link https://www.gov.uk/tax-on-dividends for information on tax return self assessment. 

The credit union is required to report all dividends paid above a threshold, currently set at £250, in an annual report to HMRC.