CHARLOTTE, N.C. - Debunking popular "spend-to-save" banking promotions, Carolina Postal CU has set out to show members a better way to save money: the credit union way.
Through its "Brighter than a Bank" campaign, CPCU is telling its members that despite the high gas prices and unsteady economy, now is a great time to save money.
"As United States' consumers and citizens, we are one of the richest nations in the world and yet we are the worst at saving our money," said Joy Watts, CEO of the $60-million CU.
After researching a number of banks' new "spend and save" debit card accounts, the credit union came to the conclusion that although these new accounts sound impressive, the actual numbers don't add up, said Deb McLean, VP-marketing and business development for the 9,000-member CU.
"The whole idea is to encourage people to save, and they weren't very impressive," McLean said. "They weren't bad, but they weren't good. We took some average members debit card monthly spending habits and did a cross-comparison against that old-fashioned, old-school credit union staple-good ol' payroll deduction. We found that banks' 'spend and save' accounts essentially are nickel and diming the consumer. When I calculated it, it's really pennies a day. You don't get any substantial savings built up from it."
McLean noted that if members would put $25 per week in a payroll-deduction plan, they would end up with $1,300 per year.
"What we did was point out the discrepancies," McLean said. "They're saying you spend to save. You don't spend to save." Members need to put their savings aside first, and then live off the rest of their paycheck, Watts explained.
"With the banks' 'spend and save' accounts it sounds so easy," she said. "They claim that every time you use their debit card you are saving and it's not true. You do not save by spending, period. Additionally, the general idea promoted at the retailers, and now some banks, is that you are saving if you are spending. We believe that is not only misleading information but unethical and does not serve our members well."
To promote their campaign to the membership, Carolina Postal CU is using direct mail, e-mail, banners, web banners, squishy light bulbs and a new blog-www.brighterthanabank.blogspot.com. The blog is researched and written by blog author "Savvy Saver."
The CU is also relying on its staff to promote the campaign. "We're just saying 'you're smarter than this. You're brighter than a bank.' Just put the money away," McLean said. "It's really up to our staff, encouraging the dialogue. The biggest push is word of mouth. We're going out to the postal meetings. We're telling them that even though times are tough, now's the best time. If they can make it now, hopefully they'll continue and increase savings."
For more information
www.cpcuonline.com and www.brighterthanabank.blogspot.com (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
