SimpliCD Purchases

SimpliCD is a brokered certificate program that taps into the insured CD market through Catalyst Corporate’s partnership with Primary Financial Company, LLC. SimpliCD offers centralized placement of large sums of cash in federally insured CDs, combining the safety of CD investing with the performance of the most competitive interest rates available, while eliminating the need for credit unions to manage individual accounts.

This is how it works:

  • Each day, SimpliCD searches its nationwide network of issuers for the very best rates on federally insured jumbo CDs.
  • Rates are shown for CDs in terms ranging from six months to five years and amounts typically ranging from $99,000 to $248,000.
  • Placements are made by purchasing multiple CDs up to the standard maximum deposit insurance (SMDI) amount at separately insured issuers.
  • SimpliCD purchases the CDs in a custodial capacity on behalf of the credit union, which receives all federal insurance benefits. The credit union is the legal owner of the CDs.
  • SimpliCD tracks, monitors and collects all credit union earnings. Credit unions receive a single consolidated monthly interest payment.
  • In addition to daily transaction statements, SimpliCD provides credit unions with one monthly statement that details its entire SimpliCD portfolio.

Features & Benefits:

  • Flexible terms and amounts are offered to fit each credit union’s investment strategy.
  • A detailed tracking system ensures that no more than the SMDI amount is placed in any single financial institution within the SimpliCD program.
  • There are no minimum purchase requirements.
  • The rate quoted is the rate credit unions receive. There are no set up, subscription, transaction, co-agent or finder’s fees.
  • Centralized, single transaction settlement of large block purchases offers significant convenience and time savings relative to engaging in multiple transactions with multiple institutions.
  • Free third-party performance reviews facilitate informed investment decisions.
  • There is no need to allocate staff resources to research bank rates, perform due diligence on issuers, purchase CDs or monitor the portfolio.
  • Clear and consolidated monthly reports are provided for easier accounting and auditing and compliance with NCUA Part 703 reporting requirements.
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