WILLIAMSPORT, Penn.–Horizon FCU said it is moving to eliminate all of its certificates of deposit with the exception of those with 12-month terms—and then plans to eliminate those in 2024.
Instead, CEO Justin Howard said the $147.1-million credit union is more interested in growing core deposits, and is offering its 14,402 members checking accounts with up to a 3.5% APY based on their relationship with the credit union.
Relationships that boost the rate include having a debit card, accepting e-statements and having paychecks direct deposited into the account. The higher rate is good up to balances of $25,000; funds over that threshold are paid 0.25%.
Members who have an active checking relationship also have the option of opening a money market account, which has no minimum balance at Horizon, at 1.25% or more the higher a member’s balance grows.
According to Horizon, in seeking to identify its “ideal member,” it discovered young people are not interested in CDs.
“They can’t grasp why they wouldn’t be able to access their own money,” Howard said.
3 Market Segments
The credit union said it is focusing on three market segments of what it called “essentially mid-American families.”
- 35-45 years old, working, outdoorsy, involved parents with conservative lifestyle, $150,000 homes and cars of less than $30,000
- Adults under the age of 55, working families with a comfortable lifestyle and a bit more expensive homes and cars, love their local sports, outdoor hobbies and country music
- Young adults who are transitioning in life to become independent
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