When 6% is Not the Best for the Member

We have had an interesting discussion at the credit union lately. Offering a 6% checking account that requires 10 debit card transactions to earn the rate is very appealing as tool to gain checking accounts. However, for most members, keeping large balances in checking accounts is really a smart financial decision. It would only be rewarding a certain segment of members. And that reward would be less than say getting 10 cents for every one of the debit card transactions they completed.

Another concern is that to attract large numbers of checking accounts, you would need to almost be deceptive in your advertising which we really try to avoid. And when we slide slightly towards that mode of marketing, our members remind us.

6% sounds great until you take a second look. We feel a better approach is to give the members a choice: 6% or part of the revenue the credit union receives from the interchange income. We are working on getting the 6% with 10 debit transactions into action so stay tuned.