Why SimpliCD?

SimpliCD enables credit unions to invest substantial funds easily in federally-insured certificates of deposit (CDs). Primary Financial, LLC, a CUSO owned by Catalyst Corporate and more than one dozen other corporate credit unions, serves as custodian and administers the SimpliCD program.

Financial Benefit

With SimpliCD, the rate quoted is the rate received – there are no co-agent fees, finder’s fees, set up fees, annual subscription fees or transaction fees. With other CD services, additional fees are common, and ultimately reduce the return to a level below the published rate. Not only are there no hidden fees with SimpliCD, indirect costs associated with searching for the best rates, investing issuers, collecting checks, filling out paperwork, and tracking investments over time also are eliminated.

Flexibility and Convenience

With SimpliCD, credit unions can participate as much or as little as they want. There are no minimum purchase requirements.

Larger credit unions can make purchases in large block increments for a single maturity. A net rate is provided for the total amount to be invested with no more than the standard maximum deposit insurance (SMDI) amount per issuing institution. The interest is included with the entire portfolio and sent to the investor in one interest payment at month-end – with all settlement occurring automatically through the credit union’s Catalyst Corporate account.

All placement and interest collection functions are performed by the staff at Primary Financial. Depending on the yield environment, block placements can offer significant advantages over agencies and government securities. The convenience and monthly cash flows make SimpliCD an attractive alternative for any size investment portfolio.

Getting started and executing trades is easy. All that most credit unions need to do is complete a corporate resolution and custodial agreement to enroll, with no additional paperwork required at the time of purchase.

Risk Management/Due Diligence

The primary risk associated with CDs is issuer default. However, a credit union can minimize its exposure by limiting total deposits at any one issuer up to the SMDI amount. Because it places no more than the SMDI amount per issuing institution, SimpliCD can invest large amounts and still maintain fully insured protection for credit union principal. This is achieved through an extensive network of strong issuer relationships. Credit unions can provide a list of CDs owned outside of those purchased through SimpliCD to reduce potential duplication.

SimpliCD includes detailed statements that ease credit unions’ monthly accounting and NCUA Part 703 reporting requirements.

With SimpliCD, credit unions have easy access to the financials of each issuing institution. At the time of purchase, SimpliCD offers a performance review of the issuing institution, complete with comprehensive safety and soundness information, including summary financial statements and comparative ratio analysis. Primary Financial provides the institution’s Veribanc Color & Star rating and its estimated CAMEL rating, both based on profitability, capital adequacy, asset size and loan quality.

For credit unions seeking a way to improve efficiencies and reduce the legwork involved in investing excess liquidity – while minimizing risk and earning a competitive return – SimpliCD is the industry solution.

CU ISI LogoAll securities are offered through CU Investment Solutions, LLC. (ISI). The home office is located at 8500 W 110th St, Suite 650, Overland Park KS 66210. ISI is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934. ISI also is registered in the state of Kansas as an investment advisor. Member of FINRA and SIPC. All investments carry risk; please speak with your representative to gain a full understanding of said risks. Securities offered by ISI are not insured by the FDIC or NCUSIF and may lose value. All opinions, prices and yields are subject to change without notice.