Online Marketing for Banks: Segmenting CD Holders by Age

Getting the most out of your bank’s CD-focused online marketing campaigns usually requires segmenting your target audience using demographic factors, such as gender, geographic location, and age.

In this entry, we look at how different age groups have CD holdings of different monetary amounts. Plugging demographic information such as this into your CD marketing campaigns helps you execute with more precision. Statistics are courtesy of Statista, and reflect the “median value of CDs owned by families in the U.S., by age of family head".

Under 35 Years Old

Comprised mainly of millennials, the adult, under 35 age group owns CDs with a median value of $4,000. As CDs go, it’s not much. But considering how many millennials are interested in finally saving money, the mid four-digit investments can add up fast.

35 to 44 Years Old

This group holds a bit more wealth than the under 35 club, possessing CDs with a median value of $6,300 per household. Again, not an eye popping amount, but members of this age bracket will be bank customers for decades to come, and the value of their CDs, as well as their ability to invest in larger CDs, will only increase.  

45 to 54 Years Old

In keeping with the theme of “the older the age group, the more wealth in CDs,” 45 to 54-year-old heads of house own CDs worth a median value of $10,000. Many in this bracket are gradually planning for retirement, and those who like to invest securely often choose long-term CDs with the best rate.  

55 to 64 Years Old

We see a huge jump in median CD holdings per household: $25,000. Many in this bracket have achieved well-paid careers and have more cash than ever to stash in savings. Add in the fact that many baby boomers are newly minted empty nesters who no longer have dependants, and it’s easy to see a picture of financial flexibility.

65 to 74 years Old

Seniors in this bracket do even better than their slightly younger peers, holding an average of $31,000 in CDs. For many, the money is all but untouchable, usable only as a financial safety net for unexpected medical bills, car repairs, and other budget busting expenditures.

Over 74 Years Old

The oldest age group shows a decline in median value CD holdings, coming in at $22,000. Because people are living longer than ever, this group is truly broad, but there’s one thing we know: They tend to live frugally on incomes that declined in retirement. As a habit, they only touch their CDs as a necessity.

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CDs are secure financial products every generation invests in, but different age groups tend to invest different amounts of money. Using age as an audience segmentation criterion can help you market CDs to the right audience segments based on their CD investment traits. The same opportunity exists with other segmentation criteria, such as gender and geographic location.

Whether you’re planning direct mail campaigns, email campaigns, or coordinating other marketing efforts to promote CDs, we can help you get the most from your resources by segmenting your audience, revealing its decision-making traits using various criteria. Call us today at (800) 221-0855, ext. 3, or email us through our contact form, and we’ll explain more

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