SimpliCD expands, includes CDs issued through the Depository Trust Company (DTC)

Corporate One is pleased to announce another investment option available to member credit unions through our SimpliCD program.  As you know, SimpliCD is an excellent way to diversify your investment portfolio and maximize yield by investing in federally insured CDs.  The best part is that SimpliCD does all the work for you, including finding competitive rates, managing principal and interest payments and handling settlement. All of which allows you to focus on other things, like serving your own members. Now, the SimpliCD program is even better as we have enhanced our program by adding DTC CDs to our offerings.

For those unfamiliar with DTC certificates, they are CDs issued by federally insured financial institutions through the Depository Trust Company. By clearing through DTC, issuers receive liquidity, along with some other benefits that make DTC-eligible CDs attractive.  What that means for you is that SimpliCD now has more issuers in the program, giving us more options to find you a competitive rate.

For those who are familiar with DTC CDs, the SimpliCD program does have a few differences. With DTC CDs, there’s no requirement on your part to comply with any mark-to-market accounting. The CDs are held in a SimpliCD safekeeping account at Pershing, but just like the existing SimpliCD program, they are titled in your credit union’s name with SimpliCD as the custodian.  There also are a few minor differences from the existing SimpliCD program, such as variations in interest frequency and settlement time frames.

When you are ready to invest in a DTC CD through the SimpliCD program, we’ve made it easy. Rates for DTC CDs are posted to the Corporate One Web site along with our other SimpliCD rates. Interested credit unions can contact our Investment Team to purchase any of SimpliCD’s products.