langley saves
Post on 13-Jan-2015
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Brett T. Noll
Senior VP/Chief Marketing Officer
Background
Launched Langley Saves in April 2006 Partnered with the America Saves Program
through the Consumer Federation of America LFCU becomes 1st credit union in the country
with a ‘Saves’ program Supported the Military Saves campaigns
What is Langley Saves?
Initially, a free savings accounts with benefits:
Free advice/coaching from a financial counselor Free seminars by financial experts on topics such as credit
scoring, debt repayment, homeownership, and retirement planning
Free subscription to America Saves quarterly newsletter Access to free branded ‘Langley Saves’ website for
financial tips and advice (langleysaves.org)
Member agrees to save a set amount on a regular basis anywhere
The change to an ‘Upside Down’ savings account:
Langley SavesMinimum to open: $5
Tier APY** Dividend Rate** Minimum to Earn APY*
Tier 1 5.10% 5.00% $0-$500
Tier 2 3.03% 3.00% >$500-$2,500
Tier 3 2.02% 2.00% >$2,500* Annual Percentage Yield (APY).** The dividend rate and annual percentage yield are the prospective rates and yields that the credit union anticipates paying for the applicable period. The dividend rate may change after the account is opened.
Example of this dividend structure:
If you have $3,000 on deposit, you'll earn the Tier 1 APY on the first $500, the Tier 2 APY on the next $2,000 (the amount greater than $500 but not exceeding $2,500), and the Tier 3 APY on the remaining amount (the amount greater than $2,500).
Why the change?
Kids not learning about dividends Not enough people showing interest
Results: Since we went ‘upside down’ in April 2008:
257 accounts with an average of $3,847 for $988,679
Total since May 2006: 850 accounts with an average of $3,014 on deposit for
a total of $2,561,900
704 members have less than $1,000 on deposit 593 have $500 or less 176 are 18 years old or younger 109 of those kids joined in the last 2 months!
Building Your Brand
Financial Counseling CreditBuilder QuickCash In-School savings programs Teacher mini-grants Member Education FLIP Constellation Club
Thank You!
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