Last year CNBC reported that 56% of Americans would not have enough money in savings to cover a $1,000 emergency expense. The likely result would be to cut other expenses or go into debt. GreenState Credit Union recently launched a product to help combat this.
“We understand that it’s difficult to get into the habit of setting money aside. So we built a product that automates the process and creates the habit for them,” commented Chief Marketing Officer Jim Kelly. The Rainy-Day Savings Account was launched in December and members now have the option of using this service. Every time a deposit is made to their checking account, 2% of the amount is automatically moved over to the Rainy-Day Account where it earns interest. Over time the balances grow and a nest egg or “emergency fund” is established.
“The member can access their funds at any time with no fees, but what we see so far is that the funds remain in the account and grow,” commented Kelly. “It’s the old “out-of-sight, out-of-mind” that makes this effective. When the unexpected expense arrives, these members will not necessarily have to rearrange their budget or go into debt. They will be ready. It’s back to the basics of paying yourself first.” In the short period that it has been offered, over 500 of members have opted for the account and balances have already grown to just over $500,000. GreenState has a goal to help over 10,000 members build the habit of saving in the first year of the Rainy-Day Account. GreenState Credit Union was established in Iowa in 1938 and has grown to serve over 400,000 members with 33 office locations in Iowa and Illinois.
GreenState Credit Union announces Rainy-Day Savings Account
February 2, 2023