In a time when the broader financial markets face ongoing uncertainty, Certificates of Deposit (CDs) stand out as a reliable investment option, proving to be a dependable choice for credit unions seeking stability. Today, I’m sharing several reasons why the time is now to act on this opportunity, along with the benefits of using a convenient digital platform—SimpliCD Online — to make your CD purchases.
Lock in Elevated Yields Before They Decline
Although CD rates have dipped slightly from their 2024 highs, they remain historically elevated. Some institutions are still offering yields that significantly outperform other investments with comparable risk levels, especially for select terms. However, this window may be closing. The Federal Reserve has signaled the likelihood of one or two rate cuts before the end of 2025, which could lead to a broader decline in CD rates.
Find a Safe Harbor Amid Market Volatility
With inflation cooling and the Fed maintaining a cautious stance, market volatility remains a concern for many investors. CDs offer predictable, fixed returns and are federally insured, making them an ideal choice for conservative investors while not sacrificing the opportunity for return.
Get Flexible Terms to Match Your Goals
CDs come in a variety of terms, ranging from 3 months to 5 years. This flexibility allows you to ladder your investments, ensuring liquidity while still capturing higher yields on longer terms.
Investing Funds Easily with SimpliCD
To easily invest funds (and generate liquidity quickly if needed), we recommend SimpliCD, a turnkey program from Primary Financial that combines CD investing and issuing with the advantages of competitive rates and consolidated reporting. Here’s why SimpliCD as an investment solution currently trumps your other options:
You get the safety and security of federally insured deposits. One of the reasons credit unions choose to invest in CDs is that they are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This insurance eliminates any credit risk. The only other investments that have an explicit guarantee are Ginnie Mae (GNMA) securities and U.S. Treasuries. Provided your credit union stays under the specified limits per insured institution (currently $250,000), the worst-case scenario is that interest and principal are returned prior to the certificate’s maturity date.
You access individual institutions that are only available through the SimpliCD program. Every eligible federal credit union using the program is also a potential issuer. Issuers, whether banks or credit unions, realize how easy and effective it is to raise funds through the program; they don’t look elsewhere. Additionally, did you know that the major corporate credit unions in the country, including Corporate One, are both owners and participants in the SimpliCD program? This puts Primary Financial in the credit union service organization (CUSO) category and, more importantly, in the category of “owned by credit unions, serving credit unions.”
You manage your investments with ease, whether you’re a large, small, or mid-sized credit union. There’s a myth that suggests CD buying is only for small credit unions. This used to be a true statement when buying CDs, especially direct CDs with an institution. However, SimpliCD has rendered this a moot point with the availability of block quotes and the ease of use when purchasing individual names. This makes it easy for credit unions using the program to manage short and intermediate term cash flow needs. It is also an alternative to bullet agency securities.
You support your fellow credit unions who are looking for liquidity by bringing in non-member deposits. Because credit unions are limited in their non-member deposit choices, they’re limited to other credit unions in most cases. When you purchase through SimpliCD, you can assist these credit unions by supporting the cooperative movement and picking up yield to comparable investment options.
Convenience Matters: Using SimpliCD Online
SimpliCD’s online platform streamlines the entire CD purchasing process, giving your team instant access to a nationwide network of issuers, competitive rates, and real-time reporting—all from the convenience of your desktop. Great rates move fast, and SimpliCD Online’s features help you build your best-yielding portfolio:
In-app and push notifications for new rates
Customized rate notifications
Rollover rate notifications
Ability to purchase directly from the notification, allowing you access to limited rates before they sell out
If you’re looking for a secure, high-yield investment this summer, consider opening or renewing a CD and take advantage of the convenient features of SimpliCD Online. As always, our team is here to help you choose the terms and strategies that best fit your financial goals. Reach out to us at 800/366-2677 or investments@corporateone.coop.
Maximize Investments with SimpliCD Online
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