FREMONT, Ohio — Fremont Federal Credit Union has launched a new checking account that offers a 10.47% annual percentage yield on qualifying balances, saying the product is designed to help members build emergency savings while using their accounts for everyday spending.
The credit union said its new HiLo Checking account was developed in response to financial challenges facing many consumers. In a frequently cited data point, the FFCU pointed to Federal Reserve data, that found 37% of adults could not cover a $400 emergency expense using cash or savings alone, while 13% said they would be unable to cover the expense at all.
“Financial wellness doesn’t begin with a six-month emergency fund or a large investment portfolio,” Fremont Federal Credit Union President and CEO Nicholas Cray said in a statement. “It begins with the first thousand dollars. When someone has even a modest financial cushion, they’re better equipped to handle life’s surprises, avoid costly debt, and start building long-term financial security.”
About the Account
According to the credit union, HiLo Checking pays 10.47% APY on qualifying balances up to $1,500, allowing members to earn dividends while maintaining access to funds for routine expenses.
Fremont Federal Credit Union said its research found that consumers with limited savings often rely primarily on checking accounts to manage their finances, with paychecks deposited and bills and purchases paid directly from those accounts.
“We realized that if we wanted to help people build savings, we needed to meet them where they are,” Cray said. “Rather than asking members to move money into a separate account they rarely use, we created a checking account that rewards the everyday financial behaviors they’re already practicing.”
Improving Member Engagement
Fremont FCU added the account is intended to encourage member engagement and strengthen primary financial institution relationships. Revenue generated through members’ debit card transactions helps support the account’s yield, according to the organization.
“We’re not interested in attracting deposits that simply sit on the sidelines,” Cray said. “We’re interested in building relationships. The same debit card activity that members are already using to buy groceries, fuel their cars, and pay for everyday expenses helps make this account possible. As a member-owned cooperative, returning that value back to members is exactly what we’re supposed to do.”
Already Attracting Interest
Fremont FCU reported that the account has already attracted interest from younger consumers, first-time account holders and members seeking alternatives to traditional checking products.
“There’s a huge difference between having a little savings and having none at all,” Cray said. “If HiLo helps a member avoid a payday lender, keep a credit card balance from growing, or weather an unexpected car repair, then we’ve accomplished exactly what we set out to do.”
