Magazine article American Banker

NationsBank to Offer Card with Savings Twist

Magazine article American Banker

NationsBank to Offer Card with Savings Twist

Article excerpt

ATLANTA - In the latest of a string of marketing innovations, NationsBank Corp. on Wednesday unveiled a credit card that allows customers to accumulate savings as they spend.

The product is tied in with a "frequent saver" membership plan developed by Start Inc., a private company based in the Washington area. Users of NationsBank/Start MasterCard or Visa cards can have as much as 7% of purchase amounts socked away in a tax-deferred annuity.

Eddie Bauer, Hertz, and Teleflora, and 17 others are on the list of companies that participate in the Start system.

Similar to Discover Plan

The offering is seen as competitive with Sears, Roebuck and Co.'s Discover card, which provides cash dividends of up to 1% on purchases.

"It clearly adds value for our customers and allows us to differentiate ourselves from virtually everybody else in the marketplace," said Kenneth D. Lewis, president of NationsBank's General Bank, the company's retail arm. "We think it will bring in new customers and cause our other customers to have more loyalty to us."

Start Inc. chose NationsBank as its exclusive issuer of credit cards.

NationsBank "stood out"' from other banks that Start approached, said C. Lloyd Mahaffey, president and chief executive officer of the marketing company.

He praised NationsBank's "aggressive consumer focus, dedication to quality in everything they do, powerful distribution [of branches], and exciting plans to be a truly national bank."

First-Quarter Rollout

NationsBank plans to introduce its cards initially in Houston, Washington, and Columbia, S. …

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