In Booming Border Town, Jumbo CD Offer Helps To Fund Loan Demand
Business is booming in this fast-growing city, and Border Federal Credit Union recently extended its non-member jumbo deposit program to meet continued strong loan demand.
Elda Morin, an accounting assistant with Border FCU, told The Credit Union Journal that Del Rio, which is about three hours west of San Antonio on the U.S.-Mexico international border, has experienced high growth for three consecutive years.
Border FCU, a community credit union with approximately 19,000 members and assets of $78 million, has had particular success with vehicle loans and home equity lines of credit. To generate funds for these loans, in 2005 the CU offered 12-, 18- and 24-month certificates of deposit. According to Morin, these CDs brought in a total of $8.7 million last year.
For 2006, the 12-month CD has been replaced by a 36-month version. Rates are: 5.11% APY for an 18-month certificate, 5.15% for 24 months and 5.20% for 36 months. The minimum deposit is $99,000.
Border promotes the CDs through brokers, as well as the national CD rate link-which allows the credit union to post rates on the Internet and reach a wide audience with little effort.
"Many banks and credit unions are members of the CD rate link, so when we get the word out, we get a response," said Morin.
"The program has been a success," she continued. "We are getting deposits from credit unions across the country; of all sizes. We expect it will continue as long as the credit union has strong loan demand."