Account Verification (Rateline or Broker)
Verify safekeeping receipts - call issuer if receipts are incorrect or not received.
Sign signature cards for each placement and return to the issuer.
Keep original certificates when applicable.

Account Verification (SimpliCD) Review transaction statement mailed the day of the trade.
Sign only one set of agreements for SimpliCD.

Monitor Interest Payments (Rateline or Broker)
Receive monthly interest checks at various times throughout the month.
Verify accuracy of the interest amounts and call the issuers for any discrepancies.
Deposit the interest checks in the appropriate accounts.
Post each interest check separately.

Monitor Interest Payments (SimpliCD)
Receive one monthly interest amount automatically deposited in your account at the corporate on the 3rd business day of each month.
Receive one interest posting representing a total for the interest earned on your entire portfolio the previous month.
A breakdown is supplied in an interest summary statement mailed at the beginning of each month.

Maturity Processing (Rateline or Broker)
Call issuer for rollover rates if applicable.
Give the issuer wiring information if maturing certificate.
Pay up to $30 for wire out fees from the issuer.
Deal with issuers who do not send funds back in a timely manner.

Maturity Processing (SimpliCD)
Call Corporate with details on the maturity.
SimpliCD deals with any late wires, not the credit union.

Other intangible benefits
SimpliCD deals with all issuer failure requirements.
SimpliCD notifies customer on all issuer mergers and issuer name changes.

Costs	SimpliCD	%	Rate Service	%	Referral Broker	%
Gross Rate		4.26		4.46		4.46
Usage Fee	None	0.00	$125/month	0.05	Avg 15 bpts	0.15
Issuer Wire Fees	None	0.00	$0-$30 ($20)	0.02	$0-$30	0.02
Corr. Wire Fees	None	0.00	$0-$25 ($10)	0.01	$0-$25	0.01
Intrinsic Labor Costs
Purchasing	Minimal		1 hour	0.020	45 minutes	0.015
Account Verification	Minimal		30 minutes	0.010	30 minutes	0.010
Monitor Interest Payments	Minimal		3.5 hours	0.070	3.5 hours	0.070
Maturity Processing	Minimal		45 minutes	0.015	45 minutes	0.015
Net Effective rate		4.26		4.26		4.17
*Intrinsic Labor Costs are estimates of what the cost would be over that of using SimpliCD.

All assumptions on the fees were based on an average portfolio size of $3 million with an average term of 365 days (30 - $100,000 CD placements). Under Rate Service, a usage fee of $125 per month ($1,500 per year) equates to $50 per placement or 5 basis points. Labor costs were based on an average salary with benefits of $20/hour. The effective time involved to monitor interest payments when managing your own portfolio was calculated as 17.5 minutes per month or 3.5 hours per certificate per year.