Midwest credit union adds 10,000 new accounts and grows balances by 56% in under two years
A Midwest credit union with approximately $5B in assets and 200,000 members, sought to increase interchange income by converting debit card spend to credit card spend.
CU Rise recommended the development of a reward-based checking account as an attractive offer to move existing members from older, less-profitable products. Features of the ‘Rewards2 Checking’ account included:
- 50% APY on checking account balances up to $20,000
- No minimum balance and no fees
- Points on every credit card purchase, redeemable for cash
- Better interest rates than money market dividend rates
- No-fee debit card with zero-liability fraud protection
- In the span of 21 months, 10,045 Rewards2 Checking accounts were opened – an average of 478 accounts per month.
- Overall balances grew by 56% YOY
- Linked credit card monthly profit is $4, while checking account monthly profit is $11.47