Using Bank Products to Fend off Deposit Runoff

5-Part Series

Non interest bearing deposit accounts are the gold standard for most banks in the current market. Rapid fed rate increases have put many banks in a position where their current loans have not yet ballooned and were written when the fed rate was sub 1%. This means that if banks want to continue making a profitable net interest margin they need to continue to have as many deposits as possible in non interest bearing accounts. The problem is that many banks are now capturing deposit accounts by offering 4% on savings accounts so some of those sedentary accounts are being moved out of the bank to accounts where they can make money. The key to stopping this runoff is to keep those funds in motion. If the merchant uses their account to run their business they are less likely to move them off the balance sheet. 

Making deposits sticky and/or adding new accounts has never been more important and in this five-part series, we will expose five simple products and targets to help your bank add or retain deposit volume.

Business Owned ATM Accounts


Cash and Compliance Heavy but Dependable Deposits

Payroll Accounts


401K, Health Insurance, Tax Liability

Government Accounts


Utility Payments, Reserve Accounts, Tax Payments

Non-Profit Accounts


Donation Pages and Fundraising Account

Medical Billing Accounts


Payments, Lock Box, and Remote Deposit