products rates savings-accounts-rates 
South State Correspondent
FEBRUARY 28, 2023
Deposit demand often spikes when the media discusses rising interest rates around Fed meetings. The graph below charts the volume demanded of interest-bearing deposits against the Fed meetings (the black lines) where they raise rates. One way to validate this is to see what is occurring with the Personal Savings Rate (below).
South State Correspondent
NOVEMBER 29, 2023
Most national and regional banks allocate marketing resources to recently acquired customers to get them to build deposit balances and purchase other products, while most community banks do not. If you are like most banks, 85% of your effort is not directed at increasing product usage. Many banks fall into the “recency trap.”
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South State Correspondent
JANUARY 11, 2023
One of the biggest mistakes bank make when pricing deposits is advertising an above-market rate, thereby shortening deposit duration and increasing negative convexity for that one account and the whole product offering. Consider a money market account at a bank. But, Maybe The Whole Deposit Base Isn’t .
South State Correspondent
OCTOBER 18, 2023
Grid-based pricing is typically used to set the applicable margin of a loan based on specific performance measures, such as credit rating or cash flow coverage. Banks can then measure the economic value obtained from each product separately. However, grid-based pricing can also be used to increase deposit balances. per year.
South State Correspondent
JANUARY 17, 2024
In our last article ( HERE ), we highlighted the methodology around why banks should calculate and drive value through customer profitability and product profitability. Here, we discuss the importance of knowing bank product profitability and productivity. As such, SunTrust was more deposit-productive than BB&T.
South State Correspondent
APRIL 19, 2023
The concern is grounded in data as higher balance accounts are more interest rate and risk-sensitive than lower balance accounts. Uninsured Deposit Performance – By Balance By way of an example, below is our updated decay data of money market accounts based on account size.
South State Correspondent
JANUARY 10, 2024
The Better Way to Calculate Value: Customers and Product If you lower deposit rates in this market, you will likely lose customers to competition that may be paying 5% or greater. All customers are not the same, nor are all products. The problem isn’t in the concept but in the process.
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