MOLINE, Ill. IH Mississippi Valley CU has created a new saving program that helps members save while they make payments on their car loans.
With the Auto Savers account members add a designated amount to their monthly car loan payment. The credit union moves the extra amount into a high-rate savings account. As the loan balance decreases, the savings balance grows.
“One of the most effective ways to build savings is to set aside money consistently over a period of time,” said Dennis Hall, president of the $870-million credit union.
“Most people have the tendency to round up bills and loan payments. Auto Savers takes that same idea, but actually sets aside the extra,” Hall said. “By adding $20 a month to their loan payment, which is about the cost of ordering a pizza for delivery, they will have saved almost $250 by the end of the year.”
