BOULDER, Colo - The $757-million Elevations Credit Union offers a “Nine for Nine” certificate – which, as the name implies, pays 9% for nine months–to new members who also open a checking account or existing members who switch to dividend checking. In addition, existing members who refer a new member are eligible to open a certificate. The minimum amount is $1,000, maximum $2,000.
Dennis Paul, AVP, business and community development for Elevations, told Credit Union Journal the Nine for Nine certificate is doing its intended job.
“We have gotten a stunning response that has contributed to our depository dollars,” he said. “The product is designed first and foremost as an acquisition tool–to attract new members.”
The program started in March 2006, when Elevations CU opened a new branch in a new market. Promotional efforts have included print advertising and direct mail. Paul said the credit union uses e-mail marketing to its existing members to drive new member referrals.
As of March 11, Elevations CU members had invested in 2,202 Nine for Nine certificates, with a total balance of $4.3 million.
“When we do a promotion like this, we use the term ‘shock the market.’ It is an eye-catcher, and the numbers bear that to be the case–as most people are putting in the maximum $2,000.
“It has been a great promotion for us, and it has met our goals for bringing in new members,” Paul continued. “We don’t attribute all of our new member growth to the Nine for Nine, but we do attribute approximately 1,000 new members acquired each of the last two years to this product.
Elevations have done several high-rate CDs in the past, but Paul declared the Nine for Nine is: “the most compelling certificate we have offered.” (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com
