|
OPTION
I / SimpliCD |
OPTION
II / Broker/Express |
OPTION
III / Area bank |
| Research |
Call
Louisiana Corporate. Saves 2 bps (your valuable
time!) over calling around. |
Call a
broker or use an expensive fax/PC service. |
Spend hours
on the phone with local banks |
| Get
a rate (example) |
5.65% for
one year, $100,000
No excess
fees. Save 10 or 15 bps.
|
5.9%, minus
the broker's commission of 10 bps or the per-CD cost of
your CD service...if you spend $2,500 a year on Express
Data and book 20 CDs per year, that's 12.5 bps per CD. |
5.45% at
local MegaBank |
| Fund
the CD |
It's done!
Money is transferred from your account. Saves
2.5 bps. |
Wire funds.
Pay $20-25 |
Wire funds.
Pay $20-25 |
| Board
resolution |
None needed.
One agreement with Louisiana Corporate handles all purchases.
Time saved = 2 bps. |
Yes...get
a board resolution each and every time you purchase a
CD |
Yes...get
a board resolution each and every time you purchase a
CD |
| Monthly
interest |
Transferred
directly to your Corporate settlement account. Your
CD interest begins earning interest immediately.
That's about 10 bps in a year. |
Wait for
the check. And wait. and wait. |
Wait for
the check. And wait. and wait. |
| Maturation |
Funds transferred
back to your account with no wire fees. Saves
2.5 bps. |
Funds wired
back to Louisiana Corporate. Bank charges $20-25. |
Funds wired
back to Louisiana Corporate. Bank charges $20-25. |
| THE BOTTOM
LINE |
SimpliCD is easy and convenient.
You didn't have to lift a finger...your net rate = 5.65% |
Not a lot of hassle on your end,
but you spent an equivalent of 27 basis points in staff
time and money. Net rate = 5.53% |
Lots of time and effort on your part.
Your net rate to show for all your hard work = 5.18% |
