Yeovil and District Credit Union (YDCU) declared a 1.5 per cent dividend for members' accounts at last week's annual meeting.
The organisation currently has 132 members and almost 30 of them turned up for the meeting.
Alan Titcombe, a director of the National Association of Credit Union Workers, was the main speaker at the event.
Work to set up the credit union was started in the spring of 1999 and it has now been trading for 18 months.
A credit union offers financial services such as loans at affordable rates for members, who must live within a certain area to join.
In the case of YDCU, anyone living within the boundaries South Somerset District Council's Area South can join.
Members must save a minimum amount for a certain period of time before applying for a loan. At the moment, YDCU has a total of £6,000 out on loans.
Treasurer Len Horner says statistics show that 50 per cent of loans are spent locally, which is good for local businesses and the local community.
Mr Horner also said that YDCU has received recent financial support from The Co-op (£750), Knightstone Housing Association (£200) and The Single Regeneration Budget (£3,500), for which the organisation was very grateful.
The group has set a target to increase membership to about 400, and anyone interested in joining can call Mr Horner on 01935 425096 or secretary June Sharp on 01935 427731.
Representatives are also at hand to answer any questions during collection times, which are 10am-12noon at Yeovil Library on Tuesdays, and 9.15am-11.45am on Fridays at the Vicarage Street Methodist Church.