More than 29,000 members of Glasgow Credit Union will benefit from the nest egg, the biggest payout ever made by the union.
They will share the windfall after bosses decided to pay out one of the best dividend rates for easy access saving accounts, an increase of more than £350,000 on last year.
Credit chiefs today announced that 29,502 union members will receive the cash before Christmas.
Hayley Street, marketing and communications executive for the Glasgow Credit Union, said: "This 3% dividend is a share of our profits, and proof of our success in a very tough market place.
"It's been so rewarding to be able to share the success with all our members, and with Christmas just days away, this will be a welcome bonus for many."
All Glasgow Credit Union members live or work within the G postcode area.
Currently, many high street providers are paying less than 1% interest on easy access savings accounts, with credit union bosses branding their 3% dividend rate as a "welcome breath of fresh air."
The credit union's easy access savings accounts do not involve any set up fees and, unlike many products offered by other savings providers, members are not limited by how many withdrawals they can make throughout the year.
Last month, the Evening Times told how another saving scheme, which was set up after a Christmas hamper firm went bust, had generated a £1m nest egg for its members.
Scotwest Credit Union revealed a record £1.1m was saved in its Christmas saving scheme, which was launched months after the collapse of Farepak in October, 2006.
Farepak went bust owing £37m to 114,000 savers.
Following the firm's liquidation, Scotwest chiefs launched a festive savings account.
The number of savers has grown over the last five years and around 1600 members shared the £1.1m windfall.