North Carolina SECU Pilots Savings Accounts Tied to the S&P Index

RALEIGH, N.C. – State Employees CU said yesterday it has introduced a savings account tied to the returns of the stock market, one of the first of its kind. SECU’s Bridge Account will pay dividends based on the quarterly return of the Standard & Poors 500 Index. SECU said the accounts, which are fully insured by the NCUA, promote savings and educate members on stock market investing. The maximum quarterly dividend on the accounts will be 3%, or a 12% (12.55% compounded) annual percentage rate. If the S&P Index declines for the quarter, then no dividends will be paid and there will be no losses. The Bridge Accounts feature a low minimum deposit of just $25, and a maximum balance of $3,000. SECU returns for the new accounts have been positive so far, with 1,174 Bridge Accounts opened in the first month generating $1.7 million in deposits.