Brokerage Services
SimpliCD — Cost Comparison SimpliCD vs. Other CD Sources
SimpliCD - A custodial CD program designed to help credit unions invest their excess funds efficiently in the national CD market. The rate quoted is the rate received with no other fees involved.
Rateline - Pay monthly fee for rates, but get no service. Fees typically will vary based on the asset size of the credit union. Once you place the trade, you are on your own.
Brokers - Pay a basis point upfront fee per placement that is typically 15 basis points. If you assume an average of
one year, the fact that it is paid upfront will likely cost you another 1 basis point. As with Rateline, once you place the trade, you are on your own.
Purchasing (Rateline or Broker)
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Call nationally to verify top rates.
- If an odd term or maturity date is required, this must be verified.
- Review the financial information on the issuer.
- Send setup sheets to issuers.
- Call corporate (or provider) with wire out instructions on each CD placement.
- Spend $5 (on average) for wire out fees from the correspondent bank to the issuer.
Purchasing (SimpliCD)
- One call is all it takes - no wire fees or transaction charges.
- No wires - all transactions are settled via national settlement.
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
third 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, not the credit union, deals with any late wires.
Other intangible benefits
- SimpliCD deals with all issuer failure requirements.
- SimpliCD notifies customer on all issuer mergers and issuer name changes.
For more information, email an investment professional at simplicd@catalystcorp.org or call 800.405.7067.
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