Area banks offer new incentives

While free checking is offered at most area banks, one institution thinks it has found a unique way to bring in more checking account customers.

Wood & Huston Bank is one of the first in the state to offer free checking accounts that accrue interest for the customer.

The new program began less than two months ago, according to Springfield bank President Carol Carlson, who said it’s still too early to gauge the reaction to the program.

“Springfield is very knowledgeable in their banking needs and what they get, so sometimes they need to see a program over a period of time and see how it’s working,” Carlson said. “When you talk to the general public, people say ‘Sure (the bank) should give me a free checking account – I keep my money there.’ When you ask them what they’d really like to see, they want to see interest.”

The accounts offer 5 percent annual percentage yield on new accounts, which also include free online banking, free bill pay and no minimum balance.

Why the shift to monetary gifts? Carlson said it’s in response to a growing demand for more consumer control.

“I think that if you ask an individual if they want a gift or if they want cash in hand, they may need a toaster that day but they’d much rather have that cash in hand,” she said. “You can only give so many gifts that keep on giving.”

See SBJ’s July 17 issue for more on the changing banking incentives arena and other banking news.