POUGHKEEPSIE, N.Y.—Hudson Valley FCU is offering a 2% APY, two-year CD to attract new members.
The $500-minimum CD carries a rate 50 basis points higher than the best two-year CD rate shown on BankRate.com (1.50% APY), which is offered by Live Oak Bank in Wilmington, N.C. Bankrate.com lists seven other FIs offering rates from 1.30% to 1.35%.
Hudson Valley told the Times Herald-Record the CD is a marketing tool.
“For the credit union, it’s for market-share growth; to get new customers through the door,” said Chelen Reyes, a VP at the $4.4-billion CU “…The challenge is to have those who don’t know about us to come in and have that lead to long-term relationships.”