Ready to Pay Checking Customers to Bank with You?

So, is this the newest trend in checking accounts – you pay the customer?

moneyYou may recall an article I wrote 2 years ago($5 a Month), where a bank offered its customers $5 a month for their first year if they met certain minimum balance and recurring direct deposit criteria.  Although the bank has since been acquired, it is still offering the account.
Santander Bank, formally Sovereign Bank, recently launched its newest personal checking account and it offers customers the opportunity to earn up to $240 a year. To earn the monthly payoff, a customer has to post at least $1,500 in deposits (this earns you $10) and pay at least 2 bills through online bill pay (this also earns you $10).  And you have to open a special savings account so the bank can deposit the payoff.  The concept is actually quite simple and easy to understand.
Sound familiar? Perhaps you’ve seen a version of this with Chase and other banks that offer a bonus of $75 to $250 for opening a new checking account, if you meet certain requirements within the first x months.  Or, perhaps you’ve seen offers to waive the monthly fee if the customer has a monthly direct deposit and a few bill payments.
Santander takes the offer to the next level, however, by offering the customer the opportunity to earn a payoff and waive fees, using the same criteria.  And the offer is ongoing – it does not expire after the first year.  For Santander, the customer has to qualify for the waiver and payoff each month – so they’re not paying customers when they don’t earn it.
What do you think – are you ready for this type of account to hit your market? If you want help evaluating and enhancing the competitiveness of your checking accounts, contact me at 303-795-3539 or lauren@oconnellconsultinggroup.com.
Are You Missing 33% of your Prospective New Checking Customers?
CSI: Customer Satisfaction

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