We currently offer a kids savings account that provides different items to the kids at account opening and when they reach a certain balance. For example: at account opening they are provided with a piggy bank. When they reach $100 they get a t-shirt and when they reach $200 they get a backpack. When I asked our marketing department how the kids are provided the t-shirt and backpack, I was told that the branches are stocked with both, but they weren't sure if the customer was being contacted or if the customer has to remember to come in for the gift. Does this seem like a problem? It does to me. Shouldn't we have a procedure in place to notify the customer that they have reached these limits or even to mail the gifts to the child? Does anyone else offer something like this? And if so, how do you provide the gifts/bonus to the child when they reach these goals?

Thanks!

Couldn't you pull a report of these accounts and review to see if the balance has met the threshold for an item and then send it to them?

the customer has to remember to come in for the gift. Does this seem like a problem?

Yes. I know one bank that told customers that if they had a specific type of checking account they would get .10% over the posted rate on any CD they opened. They took the same approach - they required the customer to remind them. Well, the regulators said that was a great big UDAAP and made them do a five year lookback and identify and pay all the back interest.

It goes back to never implement an innovative marketing strategy without thinking it through.

Yes - We should be able to pull a report and send the item to them. I actually thought this was what we were doing - but apparently not. Randy - UDAAP is what I was afraid of. We definitely need to come up with some procedures to make sure we are getting these items to the kids when they are supposed to receive them.

Thanks for your responses!