Fleet Financial Group is dropping anchor in the New York metropolitan area with a marketing campaign aimed at customers of the former Natwest Bank.
Boston-based Fleet has launched a print and radio campaign in New York, New Jersey, and Connecticut touting a high-yielding money market savings account. The account is one segment of Fleet's bundled retail product, known as the Fleet Relationship Account.
The money market savings account is a core retail product at Fleet, said Dana Rashti, manager of corporate advertising and marketing services at Fleet. And its 4.75% annual percentage yield is worth advertising.
Indeed, the national average annual percentage yield for money market accounts is currently 2.66%, according to Bank Rate Monitor, North Palm Beach, Fla. Only nine institutions offer rates of 5% or more, the research firm said.
"It's an attractive offer, and this product tends to be an anchor," Mr. Rashti said. "The money market savings account has a good rate right now, so it's a good hook."
The campaign's goal is to boost the New England company's name recognition throughout the Northeast, where Fleet wants to be known as an aggressive retail player, Mr. Rashti said. The marketing push should also help Fleet retain customers of the U.S. unit of National Westminster Bank PLC, London, which it acquired in April.
To help reach Manhattanites, the campaign includes a full-color insert in home-delivered copies of The New York Times. Print ads in other Northeast markets are altered slightly, Mr. Rashti said, to change the focus in each community.
A money market savings account is an easy way to establish relationships with new customers, said Les Dinkin of NBW Consulting, Westport, Conn. Once a customer is doing business there, it is easier to sell him mutual funds or other investment products.
"First Union is now as far north as Connecticut, so Fleet has new aggressive competitors," Mr. Dinkin said. "This is a good way for them to keep their market share as well as expand."
Mark Zandi, chief economist at Regional Financial Associates, Westchester, Pa., added that a bank needs deposits in the New York metro area if it wants to have a national presence.
"It is a highly competitive market but a very wealthy market," he said. "So if you're collecting deposits, it's not a bad place to be."
The area's people not only are wealthy but also save a lot, Mr. Zandi said. "It is difficult to succeed unless you offer competitive products and are aggressive about it," he said.
Because Fleet is a client of his firm, Mr. Zandi declined to comment specifically on the Boston company.
It also has a marketing push planned this month for its proprietary mutual funds, the Galaxy Funds.
