Holiday Club Savings Account

APY stands for Annual Percentage Yield. It is a measure of the total amount of interest earned on an account based on the interest rate and the frequency of compounding over a year. APY is a useful metric for comparing the annual earnings on different savings products, such as savings accounts, CDs, and money market accounts, because it standardizes the effect of compounding.

Key Points About APY

• Includes Compounding: APY accounts for how often interest is compounded (e.g., daily, monthly, quarterly), which can significantly affect the total interest earned over time.
• Comparison Tool: APY provides a standard way to compare the annual interest earnings of different savings products, regardless of how frequently interest is compounded.
• Formula: The formula for calculating APY is:

  APY = (1 + r/n)^n - 1

  where r is the nominal interest rate (expressed as a decimal), and n is the number of compounding periods per year.
• Higher APY: A higher APY indicates that you will earn more interest on your money over a year, assuming the same principal amount.

Example

For example, if a savings account offers an interest rate of 5% compounded monthly, the APY would be higher than 5% due to the effect of monthly compounding. This makes APY a useful metric for comparing the real return on different financial products.

When you’re comparing savings accounts, CDs, or other financial products, you’ll often see two numbers: an interest rate (or dividend rate, if it’s a credit union account) and an Annual Percentage Yield (APY). At first glance, they might seem like the same thing—but they’re not. Knowing the difference helps you make smarter financial choices, whether you’re opening a savings account or making a long-term investment. Let’s break it down.

Interest Rate or Dividend Rate: the Base Number

Interest Rate

The interest rate is the basic percentage a bank or credit union uses to calculate how much you’ll pay on a loan or earn on a deposit, before considering how often interest is added (compounded). Let’s say you open a credit union savings account with an interest rate of 3.00%. That’s the base rate your money earns before compounding is applied.

Dividend Rate

At a credit union, the term "dividend rate" is often used instead of "interest rate" for deposit accounts. As a member-owner, you’re technically receiving a share of the credit union’s earnings—similar to a dividend from a company. Functionally, though, the dividend rate works the same way as an interest rate on a bank account. [midtextcta headline="Your Loan Starts Here" text="Begin your path to financing your dream. We'll help you turn your financial goals into reality." button="Apply Now" button_link="" background="https://www.peopledrivencu.org/wp-content/uploads/2025/05/bg-ctablock-2-graphic.jpg"]

Annual Percentage: the Full Picture of Earnings or Costs

Annual Percentage Yield (APY)

APY shows how much you earn in a year on deposits, including the effects of compounding. Compounding is the process of earning interest on your interest (for deposits) or being charged interest on interest (for loans).  If your account compounds interest daily or monthly, you’ll earn a bit more than the base rate, because you start earning interest on the interest that’s already been added. That extra boost from compounding is why the APY is slightly higher than the interest/dividend rate.

Compounding Interest: Dividend Rate vs APY

APY provides a clearer picture of the actual annual earnings from savings accounts, money markets, and certificates because it includes compounding. For loans, APR is the more accurate number for comparing costs between offers, because it reflects compounding as well as fees.

• Interest Rate/Dividend Rate: If a savings account offers a 5% interest rate compounded monthly, the nominal rate is 5%. This is the base number for how much your balance will grow before compounding.
• APY: When considering the monthly compounding, the same account will have an APY slightly higher than 5% because the interest earned each month also earns interest in subsequent months.

Comparing Financial Offers Using APY

If you only look at the interest or dividend rate, you might think two products are equal—but differences in compounding or fees can make one clearly better for your wallet. A savings account with a slightly lower rate but daily compounding could earn you more than one with a higher rate but annual compounding.

Interest Rate vs APY Example

Always use APY when comparing savings products from different institutions. Knowing the difference between the base rate and APY helps you see the full picture, allowing you to make confident choices—whether you’re saving for a big purchase or making long-term investments. Let’s compare two savings accounts:  

Account	Dividend/ Interest Rate	Compounding	APY
A	3.00%	Annual	3.00%
B	3.00%	Monthly	3.04%

Both accounts have the same base rate, but because Account B compounds monthly, the APY is slightly higher. That’s the effect of compounding. [midtextcta headline="Your Loan Starts Here" text="Begin your path to financing your dream. We'll help you turn your financial goals into reality." button="Apply Now" button_link="" background="https://www.peopledrivencu.org/wp-content/uploads/2025/05/bg-ctablock-2-graphic.jpg"]

Let Us Help You With the Next Big Stage of Your Life

At People Driven Credit Union, we’re dedicated to helping you achieve your financial goals. As a member-owned financial institution, we’re literally invested in your future—and stand behind our commitment to transparency, security, and service excellence. Become a member and open an account today!

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select "Deposits."
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone's frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we're here to make your financial management effortless.

Community Alliance Credit Union’s routing number was #272477885.

In 2023, People Driven Credit Union (PDCU) merged with Community Alliance Credit Union, formerly located at 37401 Plymouth Rd, Livonia, MI 48150.

Former CACU members should now use People Driven Credit Union’s routing number, #272484988, for all transactions and checks.

Beginning January 1, 2026, the CACU routing number (272477885) will be discontinued for check processing.

Members who have written at least one check using the CACU routing number within the past 12 months will receive notification letters in October 2025 and December 2025 reminding them of this change.

What is iTalk?

iTalk Telephone Teller is our automated phone banking service. Use it to check balances, see if a check has cleared, transfer between accounts, review loan balances, make loan payments from checking or savings, and request a mailed statement.

Important update (effective September 17, 2025): iTalk is not accepting new enrollments. Members already enrolled can continue using the service as usual.

Prefer faster, modern tools? Most members find Online Banking and the MyPDCU app offer more features and flexibility. Learn more at peopledrivencu.org/mobile-online/mobile-banking/.

To make a mobile deposit to your PDCU account using your smartphone, log into your MyPDCU app or the MyPDCU online banking portal and click on "Deposit." Enter the check amount, click "Continue," and select which of your accounts (if you have more than one) you want to make the deposit to. Sign your check, write "For Mobile Deposit Only at PDCU", and include your PDCU account number. Follow the instructions provided in the app to capture an image of the front and back of the check.

Anything deposited over $2,500 will be reviewed by the credit union and will not show in your account right away. Check limit is $25,000. All deposits are subject to holds.

Securely store the original check for 7 business days after the deposit. Verify you check has been credited to your account. After 7 business days, destroy the original check by marking it "VOID" and shredding it.

YES! Depending on your browser, once you have opened your statement you may see icons on the top corner for downloading and printing.  You may also right click on your mouse and choose ‘save as’ or ‘print’.

We suggest using a password only you would know. Do not save any passwords on devices that are not yours. Use facial recognition or thumbprint recognition on your private devices.

When preparing your tax return, you are asked to include the amounts of interest earned on your accounts. If your account earned $10 or more in the calendar year, a 1099-INT will be issued. 1099-INTs are typically mailed to you by the end of January in the new year. You can also access this in online banking; click the E-statement tab and choose ‘Tax statements.’

There is a $1 per month charge for mailed statements unless you are under 23 years of age or are a Senior Power Pack member.

PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!

We are sorry to hear you’d like to close your account at People Driven Credit Union.  Please let us know if there was anything we could have done to make your experience better. Please give us a call at 844-700-7328.

PDCU's routing number is 272484988.

All members are given a membership card when the account is initially opened. Please stop by a branch or give us a call at 248-263-4100 or 844-700-7328 and that information can be mailed to you.