Tag: Tiering

Here Is The Next Generation Of Deposit Account Tiering [Video]

Deposit Account Performance

You create deposit products to segment behavior and you use tiering to drive performance within that behavioral group. While this used to be taught at banking schools, it is largely glossed over these days.  Unfortunately, many banks get lazy and set their tiers based off the competition. The funny part is, in many areas of the country, whole markets under-utilize their tiering tactics because no one has looked at the data and everyone is following each other.

 

Tiering Deposit Accounts Could Be Hurting Banks (Part II)

Deposit Management

Last week (HERE) we looked at how deposit account tiering is used, some of the objectives that banks might employ and the effectiveness of tiering in total. As discussed last week, many banks tier without objective, without data and without supportive marketing thus rendering the methodology worthless and possibly hurtful.

Tiering Deposit Accounts Could be Hurting Banks (Part I)

Bank Deposits

Because of tradition, we tier our deposit accounts according to size. Here at CenterState Bank, in our money market accounts for example, we have six tiers ranging from $2,000 up to $100,000. Currently, only the $100,000 and above tier pays a different rate of interest. The question that always comes up is do we have the right tiers and the right number of tiers? Further, are we paying the right rate on the tiers to elicit the deposit behavior we want? Let’s explore each question as the answers may change how you feel about deposit gathering.

 

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