Banking Blog

Finance Blogs » Banking » Banks to give out free gas

Banks to give out free gas

By Claes Bell · Bankrate.com
Monday, August 13, 2012
Posted: 10 am ET

Been a while since you got a nice freebie from a bank? How does $20 worth of gas sound?

As part of a promotion for Kasasa, a national brand of rewards checking and savings accounts offered through community banks and credit unions, 40 financial institutions will "take over" gas stations in 20 major cities starting Aug. 15. The kicker? You don't even have to sign up for an account to get the money.

From Rachel Witkowski at American Banker:

The promotion involves community banks and credit unions that offer deposit products through Kasasa, which is owned by consulting firm BancVue. The free deposit accounts offer perks such as an above-market interest rate, cash back or rewards for iTunes and Amazon.com.

"As a community bank, we've been involved in every kind of town fundraiser but a gas station takeover … is outside the box," says Carlie Olson, the chief financial officer at Pioneer Bank in Mapleton, Minn. "It gives us the opportunity to showcase (the deposit accounts) while giving back to the community."

Pioneer and other banks and credit unions will offer $20 of free gas per person to the first 200 people at a given gas station -- until they dole out $4,000 at the station. Patrons are not required to open an account to get gas. Atlanta; Dallas, Texas; Chicago, New York City; and Washington, D.C., are among the 20 cities targeted with the promotion.

"Gas is a metaphor for giving something back when you don't expect it," says Gabe Krajicek, BancVue's chief executive. "We want people to anchor in their brain that Kasasa gives you unexpected benefits.

Giveaways like this really underscore the differences out there in the consumer banking marketplace right now. Even as many large national banks are adapting to regulations like the Durbin amendment by cutting back services and raising fees, small banks and credit unions are finding new ways to engage with alienated large-bank customers, and offering them a real value proposition: free checking and some impressive perks, in exchange for doing more of your banking electronically and dealing with a smaller network of branches and ATMs.

These days, with mobile and online banking rapidly gaining consumer acceptance, I think a lot of people are willing to take that bargain. But beyond that, it just looks like community banks and credit unions are just straight-up outhustling many of the largest banks out there. I'm hopeful we'll see diversification and competition in consumer banking increase as a result.

What do you think? Is giving away gas a good way to win new customers? Are community banks and credit unions outhustling large national banks?

Follow me on Twitter: @ClaesBell.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
37 Comments
Tom
August 15, 2012 at 11:13 pm

Jack,

I'm not sure you get the premise. They're offering $20 worth of free gas, which is 5-6 gallons. It's to show support for the community (giving away gas to 200 people within the community) as well as advertising. Like the blog says, nothing required to sign up for or anything. Kind of like using this website and seeing the ads on the side.

And about the "best type of bank" - a bank holds your money and lends it so that they can make money, give you money (interest) and secure the money (security systems, guards, etc.). Your ideal bank is a piggy bank. Not as secure as a bank or have the features of a bank, but you got your money and nothing else.

tom
August 14, 2012 at 4:12 pm

yea right something for nothing im from the pumpkin patch

Claes Bell
August 14, 2012 at 4:02 pm

You can find location information on Kasasa's Facebook page.

Tammy
August 14, 2012 at 4:01 pm

how do you find out if your bank is participating?

jack
August 14, 2012 at 3:37 pm

lol u'd need alot more then 20 bucks to fill up my tank.

Hell I don't even think id come to half way even on them small lil Italian buggy things. Course i'm sure theirs many hidden rip offs in the fine print of transactions be they atm's using a debit card, maybe even cashing a check that would more then get that mr Jackson back.

The best type of bank is one that holds your cash and nothing else.

HANK
August 14, 2012 at 3:03 pm

Where in the Chicago area? Near south suburbs?

Mike
August 14, 2012 at 1:01 pm

Doesn't look like any of these banks are out here on the west coast. Even if they were, at the price of gas right now, nearly $4.00/gallon, that's just about 5 gallons. BIG DEAL?