GreenState banking program gains steam
GreenState Credit Union said more than 500 of its members have opted for a Rainy-Day Account since the program was launched in December, and balances in those accounts have already grown to just over $500,000.
Every time those members make a deposit into their checking account, 2% of the amount is automatically moved over to the Rainy-Day Account, where it earns interest. Over time the balances grow and a nest egg, or "emergency fund," is established, the credit union said.
GreenState said it established the program to combat an alarming trend. Last year CNBC reported 56% of Americans would not have enough money in savings to cover a $1,000 emergency expense. The likely result would be to cut other expenses or go into debt.
"We understand that it's difficult to get into the habit of setting money aside. So we built a product that automates the process and creates the habit for them," said chief marketing officer Jim Kelly.
GreenState Credit Union was established in Iowa in 1938 and has grown to serve over 400,000 members with 33 branches and mortgage lending offices in Iowa and Illinois, including Addison, Chicago, Naperville, Park Ridge, Plainfield, Skokie, St. Charles, Westmont and Woodstock.