News

Changes to Payback Savings make it easier

Lee Gardner

During recent years when interest rates have been extremely low, PayBack Savings has been a successful alternative for members who want a higher return. Today, we have over $35 million in member PayBack accounts and would love to have more. We suspect some may have considered one of the requirements too difficult and I’m happy to report that is changing.

Used to be, you needed 25 signature-based Visa or Debit card transactions in a month to qualify for PayBack. Beginning this month, you now need only 10 signature-based transactions. We wanted to make it convenient so more members will realize what a great saving tool PayBack is.

PayBack was created to reward members who have a strong relationship with Family Trust. The more products you use, the greater the dividend. PayBack’s rate for the lowest tier is higher than the rate on a 12-month certificate – and there’s no minimum balance.

So what does “signature-based” mean? It means that when you use your Visa credit or Debit card, you ask the merchant to process it as a credit transaction and then sign for it. If the two combined are 10 or more transactions, and you meet the other requirements1, then you will qualify for the Payback rate.

Other requirements include using MyBranch Online Banking and receiving monthly statements electronically. You must have a Family Trust loan, which could include a Family Trust Visa credit card even if you pay the balance in full every month. That is exactly what I do.

If you want to learn how you can earn join our other Payback members who have earned over $300,000 in the last year, then call or visit any office. We’ll explain the qualifications and the benefits, and show you just how easy it is. You can even open PayBack Savings online.

Also consider:


  • With Payback Savings, your deposits are always available for withdrawal without restriction or penalty, because unlike certificates, there is no term of deposit.
  • If interest rates go up – and many economists believe they will over the next few years – then you can expect that we’ll likewise increase the Payback rates. But if you are not happy and find a better investment, your deposits are available for withdrawal.
  • The more you save, the more you earn. We now offer rates for three tiers – under $19,999, $20,0000 to $99,000, and over $100,000. You can review the rates here.
  • You can have up to nine Payback accounts. Many members have them for different reasons, such as a tax account, a wedding account, a college tuition account, etc. You can give each account a name. And, once you qualify, you’ll earn the PayBack rate on all of your Payback accounts.
  • Like your other accounts, all of your Family Trust deposits are insured up to $250,000 by the NCUA, plus we have private insurance for another $250,000. Your total protection is $500,000.

Payback Savings is a great place to temporarily park your deposits while trying to make a decision. A good example might be following the sale of a business or a home, or if you are nervous about the bond and stock markets and want a safe place where deposits are insured. This gives you time to make informed decisions and earn a good rate of return in the meantime.

PayBack IRA on the way

We’ll soon introduce Payback IRA. This is the same Payback account, only it meets all the IRS requirements for an IRA. There are no additional qualifications to earn the PayBack rate on your Payback IRA. If you earn the PayBack rate on one account, you’ll get it on every one of the Payback accounts you have.

This is a wonderful alternative for members who are older and may be concerned about stock market fluctuations. It is especially convenient for those who are taking periodic distributions from their IRA because the money is always available for withdrawal without penalty.

At Family Trust, we are excited about these very positive changes to the Payback Savings and the introduction of Payback IRA. If we can help you in any way or answer more questions, please do not hesitate to call or visit.

Lee Gardner is president and CEO of Family Trust.

1 For a complete list of PayBack Savinngs qualifications and more information, click here.