| Credit Union : | American Airlines |
|---|---|
| Assets : | $5,200,000,000 |
| Address : | 4151 Amon Carter Boulevard | Ft. Worth, TX 76155 |
| Start Date : | August 2006 |
Rates, Fees, and Terms :
- $25 to open account; must set up recurring deposit of at least $25 per month through payroll deduction, monthly transfer or ACH transfer
- Additional deposits are allowed; no maximum deposit amount
- 60 month share certificate
- 180 day penalty for early withdrawals, unless certificate amount is used to purchase a home and is financed through the AACU.
- Rate as of March 2009 is 3.14% APY
Vendors/Systems Used :
No special technology is required.
Target Market :
- Small savers who need an easy method to save monthly
- Those who are saving for a particular goal
- Under the current rate environment, members who locked in at higher rates are using the certificate for additional deposits
Marketing Strategy :
- Currently marketed as a savings “Dream Plan” to make dreams come true
- Future marketing strategy will be focused on saving for the future
- Website, post cards, stuffers with maturity notices, etc. will be used
Program Results/Statistics :
- Currently 1,400 accounts
- $5,400 average balance
Member Benefits :
- Low initial deposit to start certificate
- Low monthly automated deposits
- Premium interest rate
Additional Information :
American Airlines Credit Union (AACU) began its Dream Plan 60-month certificate program in August 2006 to encourage small savers to develop a long term savings habit. “$25 is within the means of most members,” says Becky Emmert, the manager of deposit programs at AACU. She noted two different groups are currently using the product: small savers and savers with greater means who locked in at a higher rate and are “dropping chunks of money” into the CD.
An internal program detects when members haven’t made a deposit to the CD for 90 days and a reminder is sent to the member. After no investment activity for 120 days, the Dream Plan Share Certificate is closed and the member is charged an early withdrawal penalty of 180 days of interest. Emmert states that while the Dream Plan has been successful with 1,400 accounts, the marketing department has plans to retool the certificate with greater emphasis on saving for the future. “The environment is right to emphasize savings,” she says. The product is popular with grandparents who set up a long term savings vehicle for their grandchildren.
