“We Don’t Believe In CDs” – Horizon FCU’s Journey to Deposit Growth

Horizon Federal Credit Union is on a mission to eradicate all but its 12-month CDs by September, and even eliminate those in 2024. CEO Justin Howard explains that the credit union is more interested in growing core deposits.
The $147.1 million credit union instead is offering its 14,402 members checking accounts at 3.5% based on their relationship with the credit union, such as taking a debit card, accepting e-statements and having paychecks direct deposited into the account. That rate is good up to $25,000, at which point the interest paid on funds over that amount drops to 0.25%. Or a member qualifying with an active checking relationship could go for a money market account, which has no minimum balance at Horizon, at 1.25% or more the higher a member’s balance grows.