Key Federal lowers deposit on secured card.

Key Federal Savings Bank is once again tinkering with its secured card offer to attract more customers and visibility.

This time, the Havre de Grace Md.-based thrift is lowering the deposit amount that secures the line of credit. When customers send in their deposit check with their application, they can save $100 on the price of the deposit, and they receive a 25% increase on their credit line.

Key Federal normally requires $400 as a deposit, which earns a credit line of $500, or 125% of $400. "If we get a deposit with an application, then we know we have an account," said Robert M. Bouza, president of Key Federal's card operations.

Currently, 64% of Key Federal's new applications are not accompanied by a deposit. With this new enhancement, Mr. Bouza hopes to lower that number to 50%.

Key Federal is sweetening the offer with a Sony Walkman radio for $5.99. Also, people who request a Key Federal application package, regardless of whether it is submitted, receive a coupon for a $15 discount from Alamo Rent-a-Car.

Key Federal is one of the leading issuers of secured credit cards, with approximately 60,000 such accounts. In a drive to mainlain its competitive edge, the bank has stepped up its advertising and added a series of enhancements to the secured card product over the past two years.

Other programs include a prepaid telephone card; a one year contract with the Council of Better Business Bureaus, which stipulates that Key Federal participate in the council's alternative dispute resolution program; a lowered interest rate; and a number of educational tools designed to help consumers understand secured cards.

Key Federal's secured-card product carries a $35 annual fee and a 18.9% interest rate, and offers a deposit savings rate of 4%.

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