DALLAS – Southwest Corporate FCU members will see an immediate rate jump on their overnight funds due to the Fed’s recent rate hike. The Fed raised its interest rate target to 3.75 last Tuesday-the 11th straight increase in the past 15 months. Southwest Corporate’s top overnight rate has already been paying a 3.76% yield, and is expect to bump upward following the Federal Reserve’s announcement. “There is no lag time between action at the Fed and re-pricing our overnight fund accounts,” said Cynthia Shi, Director of Portfolio Management at Southwest Corporate Federal Credit Union. “We re-price simultaneously as the market goes up to make certain that our members have the opportunity to make as much on their investible funds as possible,” she said. Shi noted that many credit unions are experiencing tighter liquidity as borrowing increases-due in part because auto manufacturers discontinued incentive financing and relatively weak deposit growth. Credit unions that directed their excess deposits toward longer termed certificates in recent years are no longer awash in cash. When they do have excess funds, they tend to want to keep the money accessible, Shi said. Southwest Corporate’s overnight accounts provide quick access and superior flexibility while offering some of the highest rates available. “We invite credit unions to compare,” Shi said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.