Banks offer
a variety of gift incentives kids will love.
The competitive nature of the banking industry is directly related to the value of today's free gift offers from banks. In the past, opening a checking or savings account at the neighborhood savings and loan would get you a toaster or a t-shirt. During your weekly visit to the branch, your child would receive a colorful lollipop or a pretzel stick. Today, banks are fighting for our money and many are using gifts to make their company more attractive than the competition. Many of these gift offers target children. Others target adults, but still appeal to children and can be passed along by parents who open accounts.
Tech Gifts
Banks understand what appeals to kids these days, and many have foregone traditional gifts for high-tech options. The Bank of the West recently offered iPod Touches to all customers who open certain checking accounts by a certain date. HSBC recently gave out E-Readers to those who open a checking account and keep it operational for more than 180 days. Other banks have offered high-definition televisions as rewards. While most of these offers have expiration dates, those planning to open an account should shop around for current offers. Tech gifts are a great reward for children who start accounts or for parents who want to save on gifts for their kids.
Gift Cards and Cash
Throughout the year, a number of banks run money-back and gift-card promotions. When checking and savings accounts are opened or upgraded, customers receive money deposited into their accounts or gift cards. Typically, the gift cards are issued by Visa, MasterCard or Discover, so they are not for specific products or companies. The cards can be used anywhere these credit cards are accepted, so they are like debit cards with a set spending amount. In the past, Chase Bank has offered a $100 cash-back bonus for opening an account and PerkStreet online bank has offered a percentage of cash back. These offers are great for kids because they get immediate rewards for banking. While their banking experiences may not always be this rewarding, it is a good start.
Loyal Customer Rewards
Many banks offer gifts to customers who stick with them over the long haul. Banking has become a competitive business, so if a bank is able to gain a young customer and hold on to him through his adulthood, they have achieved success. Banks offer higher interest rates for accounts with higher long-term investment. While a child may not get too excited about a gift like this, by the time he reaches adulthood, it could equate to a major profit. Banks are also more likely to grant loans to long-term customers. When your child reaches 16 years of age and wants to purchase a car, a bank is more likely to lend the money if the child has been a customer since his early childhood.
Cash vs. Merchandise
While many of the larger banks are turning to cash and gift cards for their customers, it is important for banks to realize the benefits of using merchandise instead, especially when targeting kids. Gifts that lack value in the eyes of an adult may offer a thrill for younger children. Simple items like pens, notebooks, book covers, pencil cases, piggy banks and hats are more exciting than gift cards and money in the eyes of a child. Savvy banks will give away gifts featuring their logos, furthering their marketing goals and making their institution attractive to little savers.
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