BASKING RIDGE, N.J.– Affinity Federal Credit Union has launched a SmartStart Savings account that features an inverted interest structure aimed at encouraging members to build up their savings and increase their financial wellbeing.
The credit union cited statistics showing 40% of Americans don't have enough savings to cover a $1,000 emergency expense in announcing the product. AFCU said the SmartStart Savings account provides members with the ability to earn a higher savings rate on lower deposit amounts while maintaining the kind of liquidity many people prefer.
"We have been meticulously observing not only the feedback of our members and employees, but also market trends and financial needs on a national level," said John Fenton, CEO and president of Affinity. "We hear the needs of our members, which is exactly why we are innovating our products and offering a new option to help them prioritize their financial wellbeing and reach their savings goals even faster."
2% on Lowest Balances
The inverted tier structure provides the highest interest rate option of 2.00% on balances under $2,500, allowing members a competitive interest rate Affinity FCU said is higher than the national average. As members build their savings balance, the interest rate lowers, and upon reaching a $5,000 balance the interest rate levels off to that of Affinity's other savings account rates.
Affinity Federal said other features of the SmartStart Savings account include no new money requirements, no checking requirement and no direct deposit or minimum balance requirements.