Comments on: What Strings to Attach to High-Interest Checking? http://thefinancialbrand.com/11044/bankrate-study-rewards-checking-avereage-requirements/ Ideas and insights for financial marketers. Thu, 17 May 2012 00:33:41 +0000 hourly 1 http://wordpress.org/?v= By: Was für Banken wichtig ist (Teil II) « Finance 2.0 http://thefinancialbrand.com/11044/bankrate-study-rewards-checking-avereage-requirements/comment-page-1/#comment-7218 Was für Banken wichtig ist (Teil II) « Finance 2.0 Wed, 23 Jun 2010 12:13:24 +0000 http://thefinancialbrand.com/?p=11044#comment-7218 [...] people an interest rate they really love, and have them adopt the habits you’d like them to have in exchange. By requiring people to actively use online banking and their debit cards, you can afford to pay [...] [...] people an interest rate they really love, and have them adopt the habits you’d like them to have in exchange. By requiring people to actively use online banking and their debit cards, you can afford to pay [...]

]]> By: Ross S BECU http://thefinancialbrand.com/11044/bankrate-study-rewards-checking-avereage-requirements/comment-page-1/#comment-5498 Ross S BECU Wed, 24 Mar 2010 22:59:02 +0000 http://thefinancialbrand.com/?p=11044#comment-5498 It is true that with BECU Member Advantage you earn 6.17% APR on balances up to $500 on both your checking and savings. And balances above $500 do earn interest too—it’s the standard BECU savings rate, which is still well above the savings rate of most major banks. It is true that with BECU Member Advantage you earn 6.17% APR on balances up to $500 on both your checking and savings. And balances above $500 do earn interest too—it’s the standard BECU savings rate, which is still well above the savings rate of most major banks.

]]> By: Jason Sherrill http://thefinancialbrand.com/11044/bankrate-study-rewards-checking-avereage-requirements/comment-page-1/#comment-5457 Jason Sherrill Tue, 23 Mar 2010 17:25:00 +0000 http://thefinancialbrand.com/?p=11044#comment-5457 Good topic! This statement caught my attention: “Reward checking is typically twice as profitable as free checking and the attrition rate is half of what you would see with free checking accounts,” I'm curious under what conditions the attrition rate discussed here is measured and what factors are included. In other words, was this measured during a period where the high-yield remained in effect? Does the attrition increase significantly when the high-yield promotion changes? What about consumers who fail to meet the requirements after one month? Or two? The notion of these high-yield accounts is attractive, but I have reservations about how consumers will react when/if financial institutions have to start cutting the yields. With the strict requirements that many of the accounts have, I'm also curious whether consumers who fail to meet the requirements in a given month will view the unpaid interest in the same light as NSF and other unsavory fees charged that have generated so much consumer angst. I could be wrong, but these sorts of offers have a tight rope feel to me and need to be handled delicately by F.I.s offering them. Excitement about a high yield can quickly turn to boisterous discontent if the high yields vanish due either to market conditions or consumers' inability to meet the monthly requirements. Jason Good topic!

This statement caught my attention:

“Reward checking is typically twice as profitable as free checking and the attrition rate is half of what you would see with free checking accounts,”

I’m curious under what conditions the attrition rate discussed here is measured and what factors are included. In other words, was this measured during a period where the high-yield remained in effect? Does the attrition increase significantly when the high-yield promotion changes? What about consumers who fail to meet the requirements after one month? Or two?

The notion of these high-yield accounts is attractive, but I have reservations about how consumers will react when/if financial institutions have to start cutting the yields.

With the strict requirements that many of the accounts have, I’m also curious whether consumers who fail to meet the requirements in a given month will view the unpaid interest in the same light as NSF and other unsavory fees charged that have generated so much consumer angst.

I could be wrong, but these sorts of offers have a tight rope feel to me and need to be handled delicately by F.I.s offering them. Excitement about a high yield can quickly turn to boisterous discontent if the high yields vanish due either to market conditions or consumers’ inability to meet the monthly requirements.

Jason

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