Skip to content
GeoDataVision
Thread Options
#562496 - 06/06/06 02:39 PM xmas club checks
J2C Offline
Diamond Poster
Joined: May 2004
Posts: 1,475
Big Brother knows and that's a...
Currently we cut checks for our customers that have Xmas club accounts in October. We are thinking about making it a requirement that they have a DDA account to have the funds direct deposited into rather than having the check cut. Does anyone else do this? Are there any issues that anyone sees with doing this?

Thanks!
_________________________
My opinion is mine only- not my employer's!


Return to Top
Deposits and Payments
#562497 - 06/07/06 04:43 PM Re: xmas club checks
FraudBuster Offline
100 Club
Joined: Nov 2005
Posts: 198
Indiana
This is a marketing observation rather than compliance:

Christmas clubs can be a good way to get new business. Some people put their Christmas club at a separate bank from their other accounts precisely because they want to make it less convenient to pull the money out early. But if they have good experiences with you, then they start to think maybe they would like to have other accounts with you, after all.

Now, you could view it two ways: Either requiring them to have a checking account could nudge them a little farther toward doing more of their banking with you, OR it could make them think "If I can't open just the Christmas club like I want, then I may as well have it at my own bank."

Another issue is that plenty of people are a low risk in a Christmas club but not people you want to give a checking account.
_________________________
Opinions expressed do not necessarily reflect those of my employer or of my cats.

Return to Top
#562498 - 06/08/06 01:53 PM Re: xmas club checks
vlg Offline
Member
vlg
Joined: May 2003
Posts: 74
We give the customer the option of having the balance deposited to a bank account. We let them select either a checking, savings, or money market account for the deposit.

Return to Top

Moderator:  John Burnett