It’s expensive to have a member keep buying products which they open because they are “on special”, then close the product when it no longer suits their needs. Some CUs which appear to be hungry for additional capital could make incentives for their additional members. Examples:

1. As a CD matures, offer the member a 0.25% rate bonus on the renewing CD when they bring in at least 50% new money to add to the renewing CD balance.

2. Restructure dividend rates on Share Savings accounts: instead of paying crummy 1% or lower rates to all members, or instead of paying high rates that discourage members from investing in CDs, provide a Premium Dividend bonust on the first $5000 in share savings, i.e. 3% rate on the first $5000 per member, then 1% rate on money above $5000. This is similar to what the online bank PC Banker offers on its e-Checking account (www.pcbanker.com). Provide the Premium Dividend share rate to members who have at least two other CU products, such as an existing checking account and Share Certificate.