VERNON HILLS, Ill.—Baxter CU’s Power Interest Checking is driving deep relationships—an average of seven products per account holder.
Members who perform monthly requirements to get the benefits of Power Interest Checking average that impressive number, while those with the CU’s standard checking take 3.5.
The high-yield product pays 2% APY on balances up to $25,000, charges no monthly maintenance, minimum balance or overdraft transfer fees, and provides the CU’s mobile app and remote deposit solution at no cost as well as free nationwide ATM access.
The product also lets members take advantage of Enhanced Direct Deposit, which credits members’ payroll deposits three days in advance of payday.
To receive all those benefits members must make at least one direct deposit of at least $500, enroll in online statements and make 15 qualifying transactions—which can include combinations of debit, credit, online bill pay and ACH.
Brett Engel, manager of deposit products, said adding credit to the mix of qualifying transactions has been very well received by members.
“That has really differentiated this product, because similar accounts at other financial institutions typically limit the transactions to debit,” explained Engel. “People say they really like the option to use debit or credit to make the qualifying transaction limit.”
Members also like Power Interest Checking overall, as interest in the five-year-old account has continued to climb each year, said Engel.
Since 2008 most of the $2-billion credit union’s deposit growth has been in checking due to the low-rate environment, said Engel. “Year-to-date Power Interest Checking has grown by 17% in dollars and 7% in account numbers. Our regular checking has grown this year by 2% in balances.”
Engel contends offering members attractive products and services with high-yield checking builds deeper relationships than waiving fees for those who use the product. “We see a lot of banks provide checking incentives to avoid fees—we think this works better and leads to greater cross-sales.”
Members who qualify for the monthly Power Interest Checking benefits average $28,500 in overall deposits with Baxter, Engel said. Those with regular checking accounts, and members who do not meet the monthly high-yield checking requirements, average $9,700 in balances CU-wide.
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