- Becki Drahota, President, Mills Financial Marketing
All Aboard! Looking for new, low-cost deposits? Don’t miss the IRA train!
Within the next few weeks, over 45% of US households will, with little or no rate shopping, make a CD-size deposit into their IRA. After that’s done, the deposit will be left without weekly or monthly maintenance, to grow safely until next April 15, when another deposit will be made.
If you need low-cost deposits you should have an IRA campaign every year. Here’s why:
- I’ll bet you don’t have IRA deposits from 45% of your customers; make that your aspirational goal. And, customers have high propensity to use their primary financial institution for their IRA.
- IRA deposits aren’t really low cost, but they’re most often moderately priced, and very stable, as long as you keep your customer satisfied with the other services he/she uses.
- The IRA market is gonna get nothing but bigger – and better – as a well of reliable deposits.
So stop already with the “we don’t have enough IRA specialists” excuse. Get your team up to speed. Make a big deal about your no-fee environment. Court both your IRA customers and ask the rest of your customers for the honor of serving them. Use letters and phone call scripts as your primary vehicles. Because two-thirds of your customers use your drive-ups or lobbies every month, supplement the campaign with merchandising and flyers.
It’s time to get onboard with your IRAs!
