Our SimpliCD program is designed to offer credit unions the opportunity to purchase jumbo CDs from among the highest quality issuers in the country. Our program screens CD issuers to ensure that they are well-capitalized with estimated CAMEL ratings above 4. Lower quality issuers are not eligible for our program to avoid problems with their potential failure before your CD matures.
Be wary of issuers who offer higher than normal rates. They may accept funds directly from purchasers to avoid regulatory scrutiny and increased deposit insurance premiums that come with brokered deposits to distressed issuers. These low quality issuers come with more risks and very little service – factors that keep them out of our SimpliCD program.
Higher quality issuers, including many credit unions, are not required by regulators to only accept “direct placements” from purchasers. They can still participate in brokered deposit programs like SimpliCD, and offer the quality and convenience that credit union purchasers are accustomed to.
In today’s marketplace, high quality issuers are becoming more difficult to find.
With a slow economy and anemic loan demand, many banks are not eager to compete against distressed institutions that are desperate for funds. In fact, their regulators are pressuring them avoid brokered deposits – and some banks are doing so just to keep their examiners happy. But for those high quality issuers still in the market for funds, SimpliCD provides access to a nationwide inventory of competitive rates and terms of fully insured CDs.
SimpliCD also offers the convenience of:
- purchase of large blocks of CDs from multiple issuers at the same time
- enrollment with only one set of documents to cover all your purchases
- a single point of contact at SunCorp to handle the transaction
- automated settlement for all the purchase, interest, and payment entries
- comprehensive monthly report on all your holdings for easier accounting
For more information about SimpliCD, we offer a recorded webinar reviewing the details of program. Click here to access that free, 23-minute recorded session. You can also contact your Business Development Officer or our Capital Markets Group at 1-877-786-2677, option 2.