A great rate to fill the deposit gap

In search of liquidity, Day Air Credit Union introduces a five-year certificate at 3.05% APY.

In the third quarter of 2015, the loan-to-share ratio at Day Air Credit Union($391.3M, Kettering, OH) reached 104%. The credit union’s fast-growing indirect loan operation had helped position the Ohio cooperative at No. 133 out of more than 5,600 institutions in the nation.

Nearly three years later, Day Air’s ratio has moved closer to national average — 92.3% for Day Air versus 82.9% for the nation — primarily due to slowing indirect loan growth and higher than average share growth.

Still, the credit union’s appetite for deposits remains. That’s partly why Day Air introduced a high-rate, high-balance CD on Aug. 1 of this year. It’s Best in the Miami Valley Certificatepays 2.75% APY on a three-year certificate and 3.05% on a five-year with a minimum deposit of $10,000.

Here, Joe Eckley, Day Air’s director of marketing, discusses the promotion, how the credit union markets rates, the stickiness of the product, and more.


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