IOWA CITY, Iowa – A local bank opened its first on-campus branch here yesterday after the University of Iowa and University of Iowa Community CU ended a five-year partnership.
Under the new contract, Hills Bank will pay more than $613,000 for branch rental space at the IMU and UI Hospitals and Clinics over the next five years. In all, the contract will cost Hills Bank more than $1 million in exchange for special perks such as marketing to students at orientation.
The credit union had offered banking services on campus since 2006, and had paid University of Iowa more than $2.9 million in its five years as the school's financial services provider.
The contract with Hills Bank will provide students with the option of linking their Iowa One card with a checking account. The bank’s Iowa One card feature will continue to function as the credit union’s – as both a student identification and a bank card, with a black stripe containing banking information and enabling use at ATM or PIN-based locations when linked to a Hills Bank checking account.
Hills Bank will install 22 ATMs on campus starting in March, and 20 of those locations will have no surcharge – the exceptions being at Carver-Hawkeye Arena and Kinnick Stadium. The two athletics facilities will assess a $1.50 surcharge.
Students may still use credit union ATMs at its office locations.
Credit union officials decided not to participate in the bidding for the new contract after learning of the University’s new contractual guidelines and conditions.
