| Credit Union : | Langley |
|---|---|
| Assets : | $1,600,000,000 |
| Address : | 721 Lakefront Commons, Suite 400 | Newport News, VA 23606 |
| Start Date : | April, 2008 (with new rate structure) |
Rates, Fees, and Terms :
- A three-tiered upside down dividend structure; as of March 2010, interest rates were:
- Tier 1: 5.0% Up to $500
- Tier 2: 3.0% >$500 to $2,500
- Tier 3: .5% >$2,500
- For those 19 years and older, a minimum recurring deposit of at least $10 a month is required
- Withdrawals are limited to two per calendar year
Vendors/Systems Used :
No special technology needed.
Target Market :
Initially the program was designed for young members and those of modest means to develop a savings habit while earning excellent dividends, but members of all ages and financial means find the product appealing as a way to save for a goal.
Marketing Strategy :
Website, newsletters, and in area schools.
Program Results/Statistics :
- 3,456 accounts opened since April 1, 2008 when the program was restructured
- The average balance is $1,420, but this is slightly skewed by some high deposits
Member Benefits :
- Members learn to save, establish self-sufficiency, reduce debt and build wealth
- Langley Savers receive free informational and motivational workshops with strategies on how to save and build wealth
- Free advice from a financial counselor
- Free seminars by financial experts on topics like credit scoring, debt repayment, homeownership, and retirement planning
- Subscription to America Saves quarterly newsletter
Additional Information :
The Langley Saves concept with an upside-down, three-tiered structure was started in April 2008 to help people of modest means develop a savings goal and habit. The credit union also enjoys a good relationship with the district school system and used the product to help kids learn how dividends can help their savings grow and to teach them the importance of saving. “Toys are expensive,” says Richard Hill, assistant VP for Langley FCU, “and this product helps us teach youth how to save for the things they want.” Some of the savings goals have been for home ownership, an emergency account, school tuition, retirement and debt repayment.
Although the dividend structure costs more, it is definitely a way to build member loyalty and to show the credit union difference, says Hill. “Members realize it is possible for them to save and once they get started with a small amount, they realize they can contribute even more and get to their goals faster,” he explains.
