This CD Rate Jumps After a College Basketball Win

Core Insights - Ardent Credit Union has introduced a unique "Slam Dunk CD" that ties its interest rate to the performance of the Villanova men's basketball team, offering a 7-month term with an annual percentage yield (APY) that can rise to 4.25% if the team wins its home games [1][2]. Product Details - The "Slam Dunk CD" has a base rate of 3.90% which increases to 4.25% upon a home game victory by the Villanova team [2]. - The promotional rate remains valid until the final home game on March 7, 2026, with a potential extension of the bonus rate for 30 days if the team wins that game [3]. - Membership in Ardent Credit Union is required to access this CD, which can be obtained through various means, including employment with partner companies or a free membership in the American Consumer Council [4]. Market Position - The CD is likely to attract Villanova fans but may not appeal to the broader market due to its specific conditions and limited competitive rates [5][7]. - Compared to other CDs, the base rate of 3.90% is not particularly competitive, and the maximum average return of 4.00% is contingent on the team's performance [8][9]. - The early withdrawal penalty for the Slam Dunk CD is more severe than many other options, which may deter potential investors [10]. Target Audience - The product may primarily appeal to die-hard Villanova fans or loyal customers of Ardent Credit Union, as the credit union's other offerings have lower rates [11]. - The requirement for funding the CD with "new money" and the timing of the promotion may limit its attractiveness as the college basketball season progresses [11][12].