SimpliCD: Brokered Certificates

Investing :: Issuing :: SimpliCD FAQs

Managing your liquidity can be a huge headache – complicated, time-consuming, and expensive. If you’re investing in CDs, you have to research to find the best rates and terms, manage and track multiple transactions, collect interest payments, and make sure you’re properly insured along the way. And if you’re working on gaining liquidity, you’ve got many of the same problems, along with all the different fees that brokers charge, setting your terms, analyzing the market, and more.

It’s enough to make anyone’s head spin, and the drain on your office time and bottom line is daunting.

What you need is simplicity. Or as we call it, SimpliCD.

SimpliCD is a Certificate of Deposit program that makes it all easy, whether you’re on the investing or the issuing end.

The custodian for SimpliCD is Primary Financial Company, LLC, a credit union service organization (CUSO) owned jointly by corporate credit unions throughout the U.S.

Investing

No more making all those phone calls to multiple issuers to find the best rates, and managing all those wire transfers to invest in a variety of different CDs. We’ll search our huge and exclusive network daily for the best rates and flexible terms, then act as your custodian to purchase multiple CDs. With a detailed tracking system that makes sure no single CD goes above the national insurance limit, you’ll know that your investments are safe.

We track and monitor all your investments and collect all the interest, and you get one, single payment. We also have 3rd party performance reviews and a simple, consolidated reporting system. It’s secure, sound, and simple, and we’ll be here to support you all along the way. And all with no fees.

One account, one transaction, one phone call. That’s all it takes with SimpliCD.

Issuing

If you need liquidity to fund loan demand, you want easy solutions for that too. We’ve got you covered. With one phone call, you can set up an account. We’ll help you set the rate and terms, then publish your offering to our network of over 4,000 investors. It’s flexible for large or small amounts, and we consolidate all the interest payments into one single transfer to you. All with no subscription, broker or transfer fees. And it’s flexible to change with you as your liquidity needs shift over time.

It’s an easy, simple source of liquidity with the most competitive rates, and no back office work, confusion, or fees.

SimpliCD FAQs

What is SimpliCD and who is Primary Financial?

SimpliCD (pronounced “simplicity”) is an established investment product offered by Volunteer Corporate Credit Union that enables credit unions to invest substantial funds in federally-insured certificates of deposit.

Primary Financial, LLC is the CUSO owned by a group of over two dozen corporate credit unions (including Volcorp), who serve as custodians, and administer the SimpliCD program.

How is SimpliCD better than programs offered by other brokers?

First, with SimpliCD, your participation can be as limited or extensive as you like, because there are no minimum purchase requirements and no co-agent or finder’s fees. Second, the rates from SimpliCD are “net to you”, which means that the rate you’re quoted is exactly the rate you receive.

Can I invest a substantial amount of funds, and still have them 100% insured?

Yes! By placing no more than $248,000 per issuing institution, SimpliCD can invest large amounts and still maintain fully insured protection for your principal. We can do this because of our extensive network of issuer partnerships, which offers numerous investment opportunities without exceeding federal insurance coverage or your potential for fully insured investing.

SimpliCD lets you invest in a multitude of CDs, while keeping track of each investment and sending you only one comprehensive statement.

Please note: An On-Own List contains CDs owned by the investor outside of those purchased through SimpliCD. If CDs are held outside the program, SimpliCD should be made aware of those holdings to reduce potential duplication.

I see better rates out there – can SimpliCD beat those rates?

Often, brokers offer what look like more competitive rates, but behind those attractive rates are hidden costs – like broker fees, wire in and out fees, and charges for time collecting checks, filling out paperwork, and tracking investments. All of these hidden fees heavily affect your bottom line and makes your investment much more expensive in the long run.

With SimpliCD, the rate you are quoted is the rate you get, with no hidden costs or fees.

In addition, by participating in the program, you receive top quality investment services and a variety of statements that ease your monthly accounting as well as your compliance with NCUA Part 703 reporting requirements.

How do I know that your Issuers are solid institutions?

We work only with issuers that have been categorized as “well-capitalized” by the FDIC or that are considered “adequately capitalized” and that have received special permission to accept brokered deposits by the FDIC.

And at the time of purchase, we offer you a performance review of the issuing institution, complete with a variety of information relating to safety and soundness, including summary financial statements and comparative ratio analysis. Primary Financial provides the institution’s Veribanc Color & Star rating and their estimated CAMEL rating, both based on the institution’s profitability, capital adequacy, asset size, and loan quality.

All this ensures that you are only working with institutions with proven integrity and soundness.