CD Promo Success 'In The Bag'
Altura Credit Union has shut down a certificate of deposit promotion two weeks early because of the campaign's overwhelming success.
Ricki McManuis, Altura's vice president o marketing and corporate communications, said the CU's goal was to bring in $25 million during the planned eight-week promotion, which was scheduled to end Aug. 19.
Instead, Altura cut off the promotion on Aug. 4, having netted $40 million in new deposits in just six weeks.
"Everybody is competing for money, and the 'It's In The Bag' promotion worked out great," she said.
Members could open CDs of three terms: seven months, 14 months, or 21 months, with a minimum deposit of $5,000.
The minimum annual percentage yield was 4%-for opening only a seven-month CD.
However, for every additional product the member added, up to three, the rate improved by 25, 10 and 15 basis points, according to a set formula.
For example: a seven-month CD with one new product gave the member a yield of 4.25%; two new products meant 4.35%; three equaled 4.5%.
Of course, rates also increased as the term of the CD lengthened. The base APY on the 14-month CD was 4.25%; 4.5% on the 21-month certificates.
Therefore, on a 21-month with three new products, members could earn a maximum yield of 5%.
Members could choose new products from a list that included home equity loans, home equity lines of credit, assorted checking and savings accounts, signature loans, auto loans, and money market accounts.
Altura Credit Union is open to anyone who lives, works, attends school or worships in Riverside or San Diego Counties, plus residents of selected cities in Orange and San Bernardino Counties.
The credit Union recently surpassed 100,000 members, and has $685 million in total assets.