Credit Unions Tax Refunds Behavioral Economics

Growing Deposits with Tax Refunds

Loan growth is picking up and many credit unions are, for the first time in a number of years, dusting off their deposit growth plans.  Certificate specials, money market marketing campaigns, and even Christmas Club accounts are showing up on the radar.  CFOs and ALM committees are looking at pricing levels to figure out how much they want to pay for new funds.  But, there is a source of funds that shows up every spring you may be ignoring: tax refunds.

That’s right, tax refunds.  84% of households making less than $51,000 expect a tax refund, and the average tax refund for these households is between $2,100 - $2,500.   When asked what they were going to do with their refund, 32% of households indicated they had no real plans.   This is a huge opportunity for credit unions to grow stable deposits AND help members build their savings.

Our  Tax Time Savings Program encourages your members to save some or all of their tax refund. In other credit union implementations last year, 27% of members exposed to the program participated and they elected to save on average 35% of their tax refund. 

This really works, and if you contact us today you can have this program in place for the 2018 filing tax season.  We have a few program slots left - don’t wait until the last minute to file your return with Understood Connections.

 

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