MyRate Checking is a free account that currently pays 2 percent APY on deposits up to $25,000 when customers meet certain requirements each month. The bank will even waive up to $15 in outside bank ATM fees when customers meet those same requirements.
In order to receive 2 percent APY on deposits and ATM refunds, customers are required to sign up to receive eStatments; log in to online banking at least once every 180 days; use the account’s debit card at least 12 times per month (for at least $3 each transaction); and have at least one direct deposit or ACH transaction each month.
“Even if you don’t meet the requirements, you will still earn interest,” says Rick Anderson, President. “Plus, deposits over $25,000 still earns interest. So if you have $30,000 in the account, you’ll get the 2 percent APY on the $25,000 and earn 0.49 percent on the remaining balance, in this case $5,000.”
Anderson says that the MyRate Checking account rate historically runs higher than market.
“This account offered a rate as high as 4 percent APY at one time, when rates were higher, and we are always scanning the rates to make sure we are offering something extremely competitive.”
He adds that the bank can provide a higher rate because the additional debit card transactions generate interchange income to the bank—and the bank saves money by not having to mail a statement to the customer. “Including the ACH or direct deposit in the requirements gives you that relationship that keeps the customer with you for a long time.”
Even though the account has been in place for several years, the bank continues to market it through digital methods such as Facebook, on its Website, as well as through billboards, radio, television, and the bus public transit system.
The bank initially marketed the product toward older customers, since they typically build wealth through safer investments like CDs and a 401k; however, Anderson says the bank has turned its attention toward younger customers. “While the older demographic are rate shoppers and have more cash, this account has universal appeal, so our approach is to make it attractive to just about any customer.”
The bank is also planning to enhance its online application capabilities. “Right now, customers still need to come into a branch to complete the process, but in the next 30 days we plan to roll out total online applications to make opening an account a lot easier, and should help with MyRate Checking and other accounts.”
Anderson says the high rate has helped the bank attract more deposits; he adds that MyRate Checking is the most popular among the bank’s five checking accounts, and also has the highest average balances.
Source: Rick Anderson, President, People’s Intermountain Bank, American Fork, UT; phone (801)652-3289; e-mail (Contact: Megan Reis, Marketing Specialist) firstname.lastname@example.org.