Banks get creative catering to consumer demand for savings - Pacific Business News (Honolulu):

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The products include savings accountsw and CDs thatoffer incentives, perks and upgrades designecd to assist customers with their short- and long-termn savings goals. There’s also a groundswell of new financial literacy classew that take banking lessons into the workplace or Classes cover everything from avoiding foreclosure to strategies for thesophisticated They’re usually free and don’t involvee hard-core selling. But they do allow banks to get their branxd in front of thousandsof people. Response to ’s workplacew banking classes hasbeen “overwhelming,” says Melanie Regions’ consumer banking executive for Middlr Tennessee.
“We became an automated industry in the spirit of quick communicatiohand speed,” Blank says. “But now peoples are getting back to the They are in a cashoptimization mode.” Regionss also has introduced its Second Chanced CD, which allows customers a 1 percent markey rate increase if they meet their savings goal s for a year. The bank also has a no-penaltyy option that lets participants take one withdrawal during the term ofthe CD. The bank also recentlgy introduced a customer assistance progran for familiesin distress. This program helps participantds reduce or restructureproblematic loans.
Blankl says the program has helpedabout 12,0000 people nationwide avoid foreclosure. has had a workplacse banking program called Work Perks forfive years. the economic downturn has created a flood of new interesyt inthe program, says Paula Mansfield, vice president of workplace bankingb for the bank’s Middle Tennesseee branches. “Many companies are having to cut back on thingslike contributions,” Mansfield says. “They are lookinf for ways to show employees they arestillo valued.” conducted a series of focu s groups in Middle Tennessee earlier this year to determine customers’ needs.
“They said, ‘Hel me save better, budget better and save for collegewand retirement.’ People are worrier that their children don’t know how to says Connie White, marketing directo for the Middle Tennessee branches of Fifth Fifth Third also is rolling out Relationship Savings, a product that’s meant to encourage saving and draw business to the bank. Customerd who sign up for a Fifth Thirxd checking account automatically get doublre the interest rate on a savingsw account atthe bank. Another product, the Goal Setter savings works with customers to set savingds goals and rewards them withinterest hikes.
White says the bank is lookinfg ata double-digit increase in deposits this Information from Fifth Third’s market research inspired loca l branches to plan a series of “Health and festivals. The grassroots events will be held at bank branchess and willfeature mini-seminaras on saving and budgeting, credit repair and affordable home Along with the financial classes will be diabetes screenings, a personal fitness trainer giving fitness tips, healthu food booths and activities for children and “Our research showed us that focuses shouled be placed on programas that reach youth as well as White says.
“It showed that to gain relevance, banks shoulxd extend community outreach and White says Fifth Third also is seeing an increase in requestw forworkplace banking, particularly from / reports a 10 percenrt increase in users of its 5-year-olcd Way2Save savings account. It encourages customerzs to save bytransferring $1 from theire checking account into a special savings account each time they make a check card purchase or an electronidc payment. Customers earn 5 percent interestg and a 5 percent annuakl bonus in thefirst year, and a 2 percenyt annual yield and 2 percent annualo bonus in the second and thirdf years.
Way2Save has had about 2 million participants, says Wendy Lawrence, Wachovia’ s banking executive in chargw ofthe mid-South. “Consumers wante d to save, but didn’t know how,” Lawrence “Now we are seeing a wide even from highschoolp students.”