North Carolina’s Capital Bank recently launched a rewards checking account offering iTunes downlads to customers who meet a series of basic requirements (ten debit transactions per month; log on to online banking once a month; and receive statements via email).
The Tuned-In Checking Account is similar to other rewards checking accounts we’ve been hearing a lot about recently, but rather than offering a higher interest rate, the account rewards qualifying customers with $9.99 in iTunes gift cards per month.
The account is targeted at Generation Y customers – high school and college students, and young professionals. And this makes sense, as many in this group would probably rather have the iTunes every month as opposed to a higher interest rate on account balances that may not generate significant interest in the first place.
Part of the bank’s marketing efforts for the new account includes the microsite www.tunedinchecking.com. On the site, the Capital Bank image and presence is downplayed in favor of the benefits of the account: free iTunes, free ATMs; and free checking are featured prominently. The animated site speaks directly to Generation Y with its playful visuals, the language used, and the lack of traditional bank website content.
As we’ve seen many institutions introduce versions of rewards checking accounts recently, I’m sure we’ll continue to see variations on the theme. With this account, Capital Bank has found a way to reach Generation Y with a relevant product and compelling message to not only open the account, but to keep it open and to actively use it.
I wonder if Capital Bank gets a bulk-rate discount from Apple on those iTunes gift cards…I can imagine that they’ll be issuing quite a few in the coming months.
2 comments:
The iTunes checking product is pre-packaged by one of the high-interest account vendors — either Bankvue or FirstROI.
Capital Bank is (at least) the second one to market with the Gen-Y derivative of the high-interest checking account:
Oregon Community Credit Union offers two versions:
http://www.freetuneschecking.com/
http://www.netbanker.com/2008/01/bancvue_alters_the_checking_va.html
Jeffry,
Thanks for bringing the Oregon Community CU account to my attention; I hadn't seen that they were also offering iTunes downloads as rewards.
I find it interesting that OCCU is offering $10 to sign up, but is only offering 4 song downloads (at 99 cents per song) each qualifying month thereafter. It makes me wonder how profitable Capital Bank's initiative can be with a $10 reward paid each month on qualifying accounts.
I have also noticed that First ROI/BancVue seem to be behind many of these rewards programs - we'll see what else they have up their sleeves as this rewards checking product has really gained traction recently.
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