LOWELL, Mass. — Now that saving money is suddenly trendy, one credit union here has created several new products aimed at cashing in on that trend while helping its members build wealth in tough economic climate.
Northern Mass Telephone Workers Community CU is promoting four new programs to help its members replenish their savings and regain their financial security. The first is its Super Savings account, which offers members an additional $100 if they deposit $100 per month for 12 months. Additionally, the credit union will provide new members with the initial $25 needed to open a membership as further incentive to start saving.
"If you save $100 a month for 12 months, we give the member in addition $100 on the 13th month," said Doreen Burton, VP- marketing. "All they have to do is also sign up for a checking account."
"We are in an extremely tough and unprecedented time, and as this economy recovers its strength and stability, we want to help our members do that as well," explained Kenneth Del Rossi, presdient and CEO. "We believe that the Super Saver savings account will help people put their financial future first as they rebuild their savings and establish a foundation for the future."
The credit union's new member referral program-Pay It Forward-encourages existing members to refer a friend by giving both the new and existing member $20 each. They are both also entered into a quarterly drawing for an addition $250. Additionally, NMTW is also offering a new certificate of deposit, based on the idea that members shouldn't have to wait to receive interest on their investments. The Pay It Forward CD is a 13-month CD with an interest rate of 2.18%. Interest is calculated on the spot, and deposited directly into the members' savings or checking account.
"A minimum of $1,000 is needed to open this account," Burton said. "Then we will give you your year's interest rate calculated right there on the spot."
Burton noted the CU also started a new youth Super Saver account for children up to 12 years old. If the child deposits $10 per month, they receive $25 on the 13th month. Another account for teens gives members $50 on the 13th month when they save $25 a month for 12 months.
Burton said the CU has introduced these programs "because of the economy, and to encourage people to save." "These are hard times for credit unions, too," she noted. "I thought 'oh boy, we are heading for rocky times.' But the response to this has been unbelievable."
She advised others considering similar programs to study their asset size and began tracking numbers immediately, so that the CU isn't giving away more money than it can afford. "It has to be closely managed," she said.
The programs were marketing through direct mail, radio spots and newspaper advertising. "We did do one billboard, but it was very expensive," Burton noted.
