What is a new deposit account worth?
Most credit unions value a new deposit account at $500 to $850. That number rolls up the deposits the account brings in, the fee and interchange income it earns, and how long the member stays. A payroll checking account with direct deposit sits at the top of that range. A single-product savings account sits at the bottom.
Referred members are worth more than members who come in through other channels. In a Journal of Marketing study of about 10,000 bank customers, referred customers were worth about 16% more and churned about 18% less. Turn on the lift in the calculator to include it.
How the calculator works
1. All-in cost per account
Referrer reward + new-member reward + the cost to run the program. With a platform, that is a CPA: a fee charged only when a referral becomes a funded account. In-house, it is staff time.
2. Value of the account
What a new deposit account is worth to your credit union. Use your own number, or start with $500 to $850. Net value is account value minus all-in cost.
3. ROI and your ceiling
ROI is net value divided by all-in cost. Set a target return, and the calculator shows the most you can pay per side and still hit it, plus the break-even point.
What credit unions pay for referrals today
We reviewed 47 credit union and bank refer-a-friend programs that pay cash to both sides. The median is $50 to each side, about $100 per new member. Forty-three require a new checking account, and 38 also require direct deposit or debit card use within 60 to 90 days. Only 5 pay different amounts by product.
Against a $500 to $850 account, a $100 reward leaves a lot of room. Many credit unions could pay more, attract more referrals, and still earn several times what they spend. Read more in Today's refer-a-friend reality.
How to structure referral rewards
- Start from account value. Set the total reward so your all-in cost stays well under what a new account is worth.
- Pay both sides. The referrer gets a reason to share, and the new member gets a reason to open.
- Pay more for better accounts. A payroll checking member is worth more than a CD rate shopper. Price the reward to match.
- Pay on a funded account. Require a deposit and some activity, like direct deposit or debit card use, before paying out.
How to measure referral program success
Track five numbers every month: funded accounts from referrals, all-in cost per funded account, the value of those accounts, ROI, and the share of referrals that qualify. If ROI is well above target, raise the reward and watch volume. If few referrals qualify, look at your requirements.
Build in-house or use a referral platform?
An in-house program has no platform fee, but every referral needs someone to track it, check it, and pay it. In 22 of 47 programs we reviewed, referrals are tracked by hand with a printed card, a form, or a promo code. Open the in-house comparison in the calculator to see what that staff time adds to each account. For more on why programs stall, see why most credit unions over $500M don't run a referral program. Running a bank? Use the bank referral ROI calculator.
Frequently asked questions
How much should a credit union pay for a member referral?
Most credit unions pay $50 to the member who refers and $50 to the new member. That is the median of 47 programs that pay both sides. The right amount depends on what a new deposit account is worth to you. At a typical value of $500 to $850, a credit union can pay well over $50 per side and still earn a strong return.
What is a new deposit account worth to a credit union?
Credit unions typically value a new deposit account at $500 to $850. That figure reflects the deposits the account brings in, the fee and interchange income it earns, and how long the member stays. Referred members tend to be worth more: one study found referred customers were worth about 16% more and churned about 18% less.
What does a referral program cost per new account?
Add the referrer reward, the new-member reward, and the cost to run the program. With a referral platform, the running cost is a fee per funded account (CPA). In-house, it is staff time spent tracking referrals, checking qualifications, and paying out. Even all-in, a referral usually costs far less than the $559 it takes to acquire a checking customer through other channels.
How do you measure referral program success?
Track funded accounts per month, all-in cost per funded account, and the value of those accounts. ROI is account value minus all-in cost, divided by all-in cost. Also track the share of members who refer, the share of referrals that qualify, and how long it takes to pay out.
How should a credit union structure referral rewards?
Start with what a new account is worth, then set the total reward so the all-in cost stays well under that value. Pay both sides. Pay more for products that are worth more, like payroll checking, and less for single-product accounts. Require a funded account and some activity, such as direct deposit or debit card use, before paying.
Should a credit union build a referral program in-house?
An in-house program pays no platform fee, but staff have to track every referral, check each qualification rule, and pay both sides. In 22 of 47 programs we reviewed, referrals are tracked by hand. Use the in-house comparison in the calculator to see what that staff time adds to each new account.
Sources: FinIT review of 47 credit union and bank refer-a-friend programs that pay cash to both sides; Curinos, 2025 ($559 checking acquisition cost); Schmitt, Skiera, and Van den Bulte, "Referral Programs and Customer Value," Journal of Marketing, 2011.
