Rate On 1-Yr. CD At Mich. CU? 10%!
It's not a typo.
Cornerstone Community Financial (CU) here is offering a not-seen-in-a-long-time 10% interest on a one-year CD for qualifying members, more than double the national average of 4.30% on the account.
"With this type of rate, it definitely will catch people's attention," said Heather Hall, marketing manager of CCFCU. "And that's the goal."
Hall said the CD is part of an effort to raise awareness about CCF's new community charter and to bring in new members. This exceptional offer has a $500 minimum and a $2,500 maximum and is targeted toward new members.
"The criteria to qualify is that they must open a checking account and have direct deposit within 90 days of opening that account," Hall said. Existing members without checking accounts can also participate, but Hall said she expects this promotion will bring in more new money.
And, while credit union officials are aware of the risks of losing such "hot" money once the CD rate expires, she added, they're confident that other products and services will win them over as members.
"After a year of being a new member, they'll see the benefits and the value of all the great products and services that we have and keep their business here," Hall said.
The promotion was announced by way of a simple direct mail campaign to about 20,000 members that live near its three branches. The postcard advertisement promised "We'll give you 10" on the front with details of the offer on the back.
Launched Aug. 1, Hall said, it was too soon to determine success, adding that there was no expiration date on the offer, yet. "We're going to see how it does for awhile."
The $134-million Cornerstone Community Financial was formerly known as Mo-Par (Motor Parts) CU serving Daimler-Chrysler employees.