langley saves

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Brett T. Noll Senior VP/Chief Marketing Officer

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An overview of Langley FCU's savings program for low-income savers.

TRANSCRIPT

Page 1: Langley Saves

Brett T. Noll

Senior VP/Chief Marketing Officer

Page 2: Langley Saves

Background

Launched Langley Saves in April 2006 Partnered with the America Saves Program

through the Consumer Federation of America LFCU becomes 1st credit union in the country

with a ‘Saves’ program Supported the Military Saves campaigns

Page 3: Langley Saves

What is Langley Saves?

Initially, a free savings accounts with benefits:

Free advice/coaching from a financial counselor Free seminars by financial experts on topics such as credit

scoring, debt repayment, homeownership, and retirement planning

Free subscription to America Saves quarterly newsletter Access to free branded ‘Langley Saves’ website for

financial tips and advice (langleysaves.org)

Member agrees to save a set amount on a regular basis anywhere

Page 4: Langley Saves

The change to an ‘Upside Down’ savings account:

Langley SavesMinimum to open: $5

Tier APY** Dividend Rate** Minimum to Earn APY*

Tier 1 5.10% 5.00% $0-$500

Tier 2 3.03% 3.00% >$500-$2,500

Tier 3 2.02% 2.00% >$2,500* Annual Percentage Yield (APY).** The dividend rate and annual percentage yield are the prospective rates and yields that the credit union anticipates paying for the applicable period. The dividend rate may change after the account is opened.

Example of this dividend structure:

If you have $3,000 on deposit, you'll earn the Tier 1 APY on the first $500, the Tier 2 APY on the next $2,000 (the amount greater than $500 but not exceeding $2,500), and the Tier 3 APY on the remaining amount (the amount greater than $2,500).

Page 5: Langley Saves

Why the change?

Kids not learning about dividends Not enough people showing interest

Page 6: Langley Saves

Results: Since we went ‘upside down’ in April 2008:

257 accounts with an average of $3,847 for $988,679

Total since May 2006: 850 accounts with an average of $3,014 on deposit for

a total of $2,561,900

704 members have less than $1,000 on deposit 593 have $500 or less 176 are 18 years old or younger 109 of those kids joined in the last 2 months!

Page 7: Langley Saves
Page 8: Langley Saves

Building Your Brand

Financial Counseling CreditBuilder QuickCash In-School savings programs Teacher mini-grants Member Education FLIP Constellation Club

Page 9: Langley Saves

Thank You!