The Economics of Checking Rates: When Higher Makes Sense

Many financial institutions assume raising rates will increase deposit costs dollar for dollar, but that calculation overlooks how reward checking accounts perform. Qualification rates, balance caps and non-interest income can reduce the effective Cost of Funds, making a higher advertised rate more economical than it appears. 

In this webinar, Kasasa CFO Jeremy Foster will explain how to determine when a rate increase makes financial sense based on your funding needs, competitive position and product design. He’ll also explore how grandfathering an existing product and launching a more competitive offering can limit cannibalization. 

Discover a numbers-driven approach to setting checking rates that supports growth while benefiting your institution and account holders.

You'll learn how to:

• Identify overlooked factors that influence the profitability and long-term value of checking deposits.
• Compare reward checking with CDs, Fed funds and other funding sources using a more complete cost analysis.
• Develop a competitive rate strategy that attracts new relationships while protecting the existing deposit base.

A complimentary webinar from Kasasa