Continued: Core Strategies to Accelerate Your Share Deposits...

including a Super Tier. For example, some credit unions have added $100,000+ and $250,000+ tiers to their money market and IRA savings accounts. The higher IRA tier is designed to encourage rollovers.


Strategy 4: Timing Is Everything – Too many credit unions do not react fast enough to rate and marketplace changes. At some credit unions, too much time goes by with no rate changes up or down. In the meantime, if rates are too low, members will move their money to your competitors. The best strategy is to monitor and react to the marketplace. If you snooze you lose.

Strategy 5: Active Member Relationship Program – Consider a large depositor relationship pricing program. You can reward active large depositors based on their total deposit accounts balance. Incentives can include a product/service bundle, such as free checking, online banking and bill payer, plus savings and loan rate bonuses. However, if you already have a general membership relationship program in place, the bundle would be redundant. Another rewards option is to assign a “personal” member services representative to a large depositor, plus include special gifts, rate and/or loan bonuses throughout the year.

Strategy 6: Introductory Bonus Dividend Rate – A flat rate bonus dividend or a higher rate for a specific term is another incentive option. Depending on the rate offered, terms are often set from 1-12 months.

Strategy 7: Education & Frequency – Research continues to show that too many credit union members do not consider their credit union to be an investment resource. That’s why it is important to regularly promote your accounts online and with newsletter articles and direct mail promotions.

Source: Callahan & Associates,