Boosting Member Loyalty with Term Deposits: A Guide for Canadian Credit Unions

Why Term Deposits Matter More Than Ever for Credit Unions

In today’s increasingly competitive Canadian financial landscape, credit unions are seeking reliable ways to deepen relationships with members while strengthening their deposit base. One strategy often overlooked? Credit union term deposits.

Term deposits, including Guaranteed Investment Certificates (GICs), are emerging as critical tools not just for financial growth but also for boosting member engagement and loyalty. Let’s explore why term deposits are central to the next phase of credit union success.

How Term Deposits Increase Member Engagement

Term deposits provide a tangible touchpoint in the member relationship lifecycle. Unlike day-to-day chequing accounts, term deposits signify trust and commitment – members are literally investing their money with your institution for an extended period.

Key engagement benefits include:

• Increased member stickiness: Members with term deposits are more likely to stay loyal over the long term.
• Cross-selling opportunities: Term deposit conversations often open doors to additional products like RRSPs, TFSAs, or financial planning services.
• Financial confidence building: Offering competitive, safe investment options reinforces your position as a trusted advisor.

According to the Canadian Credit Union Association, members who hold both savings and investment products show significantly higher lifetime value than transactional-only members.

Best Practices for Promoting Term Deposits

If credit unions want to leverage term deposits for maximum engagement, marketing efforts must go beyond passive rate advertising.

1. Targeted Member Campaigns

Use your core banking software and CRM data to segment audiences based on age, savings behaviour, and life stages. Promote GICs to members seeking low-risk growth options or nearing major milestones like retirement or home purchases.

2. Educational Content

Many Canadians are unfamiliar of the nuances between different term deposit options. Providing webinars, blogs, or in-branch seminars can position your credit union as a financial educator – not just a service provider.

3. Flexible Product Offerings

Consider offering:

• Step-rate GICs
• Market-linked term deposits
• Short-term cashable options
• Flexibility encourages members to find a term deposit that matches their needs, improving satisfaction.

4. Incentivize Renewals and Rollovers

Make renewals easy and attractive. Offer loyalty bonuses, streamlined digital renewal options, or personalized advice sessions for maturing deposits.

Leveraging Digital Tools for Term Deposit Management

Modern digital solutions have revolutionized how term deposits are managed, delivering substantial improvements for both members and internal teams.

Term Deposit and GIC Management solutions like Portfolio+ provide an end-to-end digital journey that streamlines operations, reduces manual touchpoints, and elevates the overall member experience.

Seamless Digital Onboarding of GIC Products:

Credit unions can now onboard members into term deposit products fully online, offering a quick, paperless process that aligns with member expectations for convenience and speed.

Real-Time Rate Updates and Product Configuration:

Dynamic rate management tools enable institutions to adjust term deposit offerings instantly based on market conditions, ensuring that rates, terms, and promotional products remain up to date across all member touchpoints.

Broker Network Integrations:

Built-in integrations with networks like CANNEX Financial Network enable effortless brokered deposit handling. This ensures real-time synchronization of rates and offers, making it easier to manage external distribution channels and grow deposits through third-party networks.

Automated Renewal and Maturity Notification Workflows:

Automatic notifications inform members about upcoming maturities and renewal opportunities. Customized messaging can be sent digitally, improving engagement rates and reducing the administrative burden on staff.

Full Compliance with Canadian Regulatory Standards:

Portfolio+ solutions are built to support compliance with Canadian regulatory standards, including deposit insurance requirements and Anti-Money Laundering (AML) obligations. This helps credit unions minimize risk, pass audits with ease, and focus on growth by reducing the burden of regulatory compliance and reporting.

By adopting modern GIC term deposit software, Canadian credit unions can drastically reduce manual workloads, strengthen compliance, and offer a seamless digital experience that today’s members expect.

Real-world Example of How a Canadian Financial Institution is Winning with Portfolio+ Term Deposit Solution

By automating the acceptance and reconciliation of brokered deposits, one financial institution reduced manual effort dramatically, going from five full-time employees to managing high deposit volumes with just one. Increased efficiency translated directly into stronger growth and member satisfaction.

This real-world example highlights how strategically leveraging term deposit technology can unlock massive engagement and revenue growth. Read the case study.

The Opportunity Ahead for Canadian Credit Unions

As Canadian consumers increasingly seek safer investment options amid market uncertainty, credit union term deposits are positioned for renewed relevance.

By combining smart marketing, flexible products, and modern digital tools, credit unions can transform term deposits into powerful engines for deeper member relationships, stronger loyalty, and sustainable growth.

Is your credit union ready to elevate its term deposit strategy?