It’s tax season and money is definitely on everyone’s mind.  A great deal of opportunity lies before those members receiving tax returns and adjusting your promotions to reinforce these opportunities could dramatically benefit your Credit Union.

Loans:

If your Credit Union is looking to increase your loan portfolio, it’s important to remember March is one of the highest auto loan generating months in the year.  Tax returns provide a great means for down payment – even the smallest return can provide members with more buying power. 

Offering members cash back incentives this time of year on new and refinanced auto / home equity loans will provide members with a greater incentive to act because in a sense they are receiving part of their return back from you.  Auto refinance promotions where members receive $50 or $100 cash for bringing their loan to your CU work very well during tax season.

Deposits:

On the other end of the spectrum, Credit Unions seeking to jump their share portfolio (as so many currently are), tax season is very promising.  IRA contribution reminders are good to mention; however, a large portion of your membership will probably have already filed their returns by March.  Focusing on Certificate or Money Market Accounts will usually yield higher response as the tax deadline approaches.

Offering a special tax season Certificate Account Rate, March through April, may help your Credit Union hold on to a large portion of the new money tax returns bring in.  Continuing with keeping money on the mind, cash bonus awards are another way to have members deposit their returns into investment accounts.  If the member deposits their tax return into a Certificate Account, the Credit Union will put another $25 to $50 on top of their deposit as a bonus.

Whether your Credit Union is in need of loans and/or deposits, tax season should not be overlooked.  As one of the most money-oriented times of the year, your marketing strategy may be dramatically impacted depending upon how you act (or don’t act) in the upcoming months.