A Florida credit union has begun a rewards program that encompasses all a member's accounts and targets borrowers.

USF Federal Credit Union ($587.1 million in assets, 56,687 members) pays its members up to 5% of the interest paid on loans each quarter based on their overall absolute balances in loans, savings and checking accounts.

The Catalyst Member Rewards program, launched May 31, also includes out-of-network ATM fee reimbursements, overdraft transfer fee waivers, free money orders and official checks.

Rewards programs have become expected, especially among millennials, which have an outsized presence among USF FCU members, said Deborah Clark, chief marketing officer.

“It's a competitive market out there,” Clark said.

The Tampa-based credit union has an average member age of 39, largely because more than half its members are students, faculty and staff at the University of South Florida.

About 14% of members are in the Orlando area and affiliated through USF FCU's Darden Credit Union division serving employees of Darden Restaurants, Inc., and its Red Lobster Credit Union division for employees of Red Lobster restaurants.

USF FCU will rebate 1% of interest payments per quarter to members who have a combination of accounts with balances of $10,000 or more. The reward increases to 3% for balances of $25,000 or more and 5% for balances of $50,000 or more.

For example, a member would qualify for a 3% reward with a checking and savings balance of $5,000 and a 7%, 60-month car loan taken out last September for $22,000. The member's reward would be 3% of the $347 paid in interest from March through June. That $10 would be automatically deposited into the member's account at the end of July.

Clark said USF FCU designed its program to reward members based on the depth of their relationship with the credit union.

The cash rewards don't go to members who “just come in here and cash a check or go to the ATM and make a withdrawal, but they don't have an auto loan with us, they don't have a mortgage loan with us, they don't have our credit card,” Clark said.

“We're hoping this will entice them to engage more deeply with the credit union.”