Need a CD stampede?
Rate special and bump option one way to hit deposit targets—and fast.
$1 billion 1st United Services Credit Union knew members were starting to show more interest in deposit rates as the Fed started increasing the base rate.
Steve Stone, CEO of the $1 billion CU in Pleasanton, Calif., saw a dramatic illustration of that interest in October when 1st United Services CU offered a 3 percent interest rate on a 36-month CD and started a stampede.
“We typically run promotions like that for a month, but we hit our target of $20 million in just two days,” he reports. “We pulled it in just over a week, and by then we had $40 million. We saw results beyond our wildest dreams. It was tremendously successful from depositors’ standpoint, but I wouldn’t do it again.”
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