|Credit Union :||American Airlines|
|Address :||4151 Amon Carter Boulevard | Ft. Worth, TX 76155|
|Start Date :||August 2006|
Rates, Fees, and Terms :
Are there Fees Charged? None other than early w/d – that is waived if used for a home loan where the fin is done at our Credit Union
Required financial education program? None required – many education opportunities offered for all our members.
Vendors/Systems Used :
Target Market :
Existing Members: Youth was the original target but we are finding that grandparents like the Dream Plan also
New Members to the credit union? Not specifically
Marketing Strategy :
Our regular channels for marketing only – website, Cents magazine sent to every member owner’s home, etc.
Program Results/Statistics :
How many members have used this product? 611
What is the average savings balance? $629.52
Member Benefits :
Premium dividend rate – currently at 3.85% with a 3.91 APY
Additional Information :
Our dream plan share certificate offers a unique way to start saving for your dreams without having to invest a large amount of money at one time. Once your Dream Plan is open, you lock in a premium dividend rate – meaning you will get the most for your money.
Initial deposit is $25.00 – 60th month Share certificate.
No penalty for early w/d if used to purchase a home and finance with AAFCU.
Educate young adults to start a savings plan.
After opening your plan with $25.00 you must set up a recurring deposit of at least $25 per month – any of three ways: payroll deduction, monthly transfer or ACH transfer.
Additional deposits are allowed and you may invest as much as you like.
Penalty for early withdrawal (except as noted above) is 180 days dividends.
- members may be able to avoid early w/d penalty by using a share certificate secured loan
Why was your credit union interested in offering small savings programs for members under 18 years of age?
To encourage the habit of savings and making and keeping long term goals.
What is the profile of a member that uses the product? (i.e. credit union members, children from local schools etc.
CU Members only
What have you learned from offering this product? Would you do anything differently?
Originally it was targeted for our youth…but we are finding that the grandparents like it as a long term savings vehicle for grandchildren.
What is the next step – Do you plan to expand the program or change any program components?
No plans for any changes
What has been the biggest benefit to your members?
Small savers get a premium dividend and it also sets up long term savings habit. Early withdrawals to buy a home do not incur a penalty – if they use AA Credit Union to finance their mortgage.
Would you recommend this product to other credit unions?
Great way to encourage the savings habit and encourage members to make long term goals.