RENO, Nev. — When it comes to core deposit strategy, CDs are about as fashionable as gas guzzling SUVs in a $4 per gallon economy.
"I never felt CDs were a wise move, but when I needed to raise funds, I didn't know what else to do," said Ritch Van Duzer, CEO of Clearstar Financial Credit Union. Clearstar is one of about 100 credit unions that now use reward checking to control the ebb and flow of core deposits.
Special CD rates are usually a guaranteed source of new money, but they send CU chief financial officers scrambling when they drain right back out of an institution as soon as the promotional term ends.
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