Banks get creative catering to consumer demand for savings - Pacific Business News (Honolulu):

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The products include savings accountss and CDs that offer perks and upgrades designed to assist customers withtheir short- and long-ternm savings goals. There’s also a groundswelpl of new financial literacy classezs that take banking lessons into the workplaceor community-at-large. Classes covef everything from avoiding foreclosure to strategies for thesophisticated investor. They’re usually free and don’t involved hard-core selling. But they do allow banks to get theidr brand in front of thousandzsof people.
Response to ’s workplacre banking classes hasbeen “overwhelming,” says Melanir Blank, Regions’ consumer banking executive for Middle Tennessee. “Wr became an automated industrhy in the spirit of quiclk communicationand speed,” Blank says. “But now peopl e are getting back to the They are in a cash optimization Regions also has introduced its SecondChance CD, whicjh allows customers a 1 percent markegt rate increase if they meet their savingsw goals for a year. The bank also has a no-penalt option that lets participants take one withdrawap during the term ofthe CD.
The bank also recentlhy introduced a customer assistance prograk for familiesin distress. This program helps participante reduce or restructureproblematic loans. Blank says the program has helpedfabout 12,000 people nationwide avoid foreclosure. has had a workplacew banking program called Work Perks forfive However, the economic downturn has createe a flood of new interest in the program, says Paulwa Mansfield, vice president of workplace banking for the bank’a Middle Tennessee branches. “Many companies are havin to cut back on thingslike 401(k) Mansfield says. “They are looking for ways to show employee s they arestill valued.
” conducted a seriese of focus groups in Middle Tennessed earlier this year to determine customers’ needs. “They ‘Help me save better, budget better and save for college and People are worried that theifrchildren don’t know how to says Connie White, marketing director for the Middle Tennessee branches of Fifth Fifth Third also is rolling out Relationshi Savings, a product that’s meantr to encourage savings and draw business to the Customers who sign up for a Fifth Thirxd checking account automatically get double the interest rate on a savingw account at the bank.
Another the Goal Setter savings account, works with customer s to set savings goals and rewardsd them withinterest hikes. White says the bank is lookingy ata double-digit increase in deposits this Information from Fifth Third’s market researchy inspired local branches to plan a seriees of “Health and festivals. The grassroots events will be held at bank branchess and willfeature mini-seminars on saving and budgeting, credift repair and affordable home ownership. Along with the financiao classes will bediabetes screenings, a personal fitnesd trainer giving fitness tips, healthy food boothxs and activities for childrehn and massages.
“Our research showed us that focuses shoule be placed on programs that reach youth as wellas adults,” White says. “It showed that to gain banks should extend community outreach and White says Fifth Third also is seeing an increasee in requests for workplace particularlyfrom nonprofits. / reports a 10 percent increase in users ofits 5-year-old Way2Save savingzs account. It encourages customers to save bytransferring $1 from theit checking account into a special savings accounft each time they make a check card purchase or an electronixc payment.
Customers earn 5 percent interest and a 5 percent annual bonu s in thefirst year, and a 2 percentg annual yield and 2 percent annual bonus in the second and third years. Way2Save has had abou t 2 million participants, says Wendy Wachovia’s banking executive in charge ofthe “Consumers wanted to save, but didn’ty know how,” Lawrence says. “Nowq we are seeing a wide interest, even from high schookl students.
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