Configure Conditions for Qualified Dividends

Screen ID: 

USDIV-03
Screen Title:

Configure Conditions for Qualified Dividends
Panel ID: 3789
Tool Number: 777 or 963
    Click here to magnify

Access this screen by entering an A in the Qualified Dividend Processing field on a Share Draft Dividend Configuration screen and using Configure Qualified Dividend Processing or using Qualified Dividends.

For a more in depth look, view the booklet Qualified Dividends.

ALSO SEE THESE BOOKLETS: Card Activity Rebates (CAR) - ATM Surcharge and Service Charge Rebates

Interested in Qualified Dividends Savings Accounts?

Contact the Earnings Edge team at CU*Answers for additional information and assistance with developing and configuring a Qualified Dividends program for your savings accounts.

Using This Screen

Use this screen to set the specific parameters a member must meet to receive the benefit of the qualified rate. The configuration allows for a great deal of flexibility so you can design a program that fits your specific requirements.

Use the Transaction description if not qualified field if you wish to generate a zero dollar transaction record when the member fails to qualify for the configured dividend.  By including a permanent record in their transaction history, visible on statements and in online banking, you can notify members of the dollar amount they did not receive in the previous month to remind them of the value of the program.  If no text is entered in this field, a zero dollar transaction is not created.  If the member fails to qualify for the special rate when dividends are calculated, the text entered in this field will appear as a $0 transaction, along with the amount for which the member failed to qualify. 

Example: “DIVIDENDS FORFEITED $8.49”

(The system calculates the difference between what the member received and what the member could receive for this dollar amount.)

Below this transaction description is the Allow members to see current status via online banking field.  Check this to allow members with an account of this Dividend Application to track their progress toward receiving the qualified rate online.  To view pictures, refer to the Qualified Dividends booklet.  NOTE: If you use this configuration to offer ATM and/or card activity rebates but do not actually give a special dividend rate for qualified members, remember that the online banking feature was specifically designed to promote the special rate and does refer to the term “APY” on the page, buttons, help content, etc.

The next section allows you to apply ATM surcharge, ATM service or Card Activity Rebate (CAR) rewards.  The rebate program codes must be selected on the previous screen to appear on this screen.  Select whether to offer these rebates to just members who qualify for the higher qualified rate or to all members with this account.  (ALSO SEE THESE BOOKLETS: Card Activity Rebates (CAR) - ATM Surcharge and Service Charge Rebates)

The next two areas of the configuration screen allow you to set the requirements for receiving the dividend. These selected items are AND conditions. All requirements must be met for the member to receive the qualified dividend.

  • Final qualification for these dividends is calculated at End-of-Month; although a Simulation Report allows you to preview members that do not qualify during the month.

The middle section of the screen allows you to select the “Miscellaneous Conditions” that apply.  If these are required, the status of the membership is evaluated to determine if the member qualifies for the higher rate.   

  • eStatement enrollment (that the member is enrolled at the time the dividend is assessed)

  • Bill pay enrollment (that the member is enrolled at the time the dividend is assessed)

  • Minimum audio response calls (during the current month, as of the time the dividend is assessed)

  • Minimum online banking logins (during the current month, as of the time the dividend is assessed)

The bottom section of the screen allows you to require a specific number or specific dollar amount of transactions of selected transaction origin type, or to create a combination of requirements for several origin types.  You might, for example, require a certain number of debit card transaction or a certain minimum dollar amount of ACH/Payroll transfers.  

To add the qualifying transaction requirements, select Add Condition. You will move to the Required Activity by Delivery Channel screen which allows you to set the qualifying activity for a specific origin code or group of origin codes.

  • If transaction activity is required to qualify for the higher (Qualified) rate, you can configure (for each transaction item) whether the member receives the qualified rate based on the transaction activity on the qualified account or on all sub-accounts.   (This configuration is set up on the screen accessed by selecting Add Condition.)

  • NOTE:  A caveat to consider when selecting “All sub-accounts” is that since one transaction could apply to multiple sub-accounts, the transaction could also be counted more than once toward the member receiving the Qualified rate.  One easy to understand example is a disbursement from a loan to a checking account where the disbursement is counted as well as the transfer into the checking account.

Select Done to save your changes to the qualified dividend conditions.