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Retail Deposits: More Aggressive Pricing Is Widening The Rate Gap Between Banks

This Month in Retail Banking

Deposit shifts have continued as a result of rising rates and the failures of Silicon Valley, Signature and First Republic. That’s according to the May edition of the Curinos Consumer Deposit Analyzer. Balances over $250k have declined the fastest, though material uninsured balances remain in both checking and savings. Checking balances in particular remain at risk as customers look for yield. 

In addition, the gap in growth of savings and CDs has widened dramatically between the fastest growing banks, those with 8% growth since January 2022, and the slowest growing banks, those with 9% runoff over the same time period. That gap has now increased to 17% over the last 15 months. (See Figure 1.) 

Figure 1: Deposit Balance Growth | CD & Savings | Indexed To Jan ’22​

Quartiled by End Balance Growth from Jan ‘22 to Mar ‘23

Source: Curinos Retail Deposits Analyzer | Note(s): Industry quartiled by balance growth from Jan ‘22 to Mar ’23. Online banks are excluded.​

The divergence has increasingly been driven by more aggressive rate-setting at the higher end. Of the 1,325 banks tracked by Curinos, 16% are offering a rate of at least 3.00% on savings, even as fully 50% of banks do not offer a rate above 1.00%. On the opposite end, 20% of banks are not offering a rate above 25bp and are thereby risking increasing runoff. (See Figure 2.) 

Figure 2: Distribution Of Savings Acquisition Rates | May ‘22 – May ’23

% of Branch banks offering a Savings/MMDA product of at least the following rates

Source: Curinos Retail Deposit Rate Data, includes 1,325 banks as of May 1, ’23. Excludes online banks. 
  • Author
    • Adam Stockton

      Adam is a Managing Director who leads the Retail Deposit & Lending businesses at Curinos. He has spent more than 18 years advising financial services companies on growth and profitability strategies, focused on product management, growth, profitability and pricing. Clients include a majority of the top 25 US banks, a number of the largest banks in Canada and Australia, brokerages, Credit Unions, direct banks and fintechs.​ Adam’s work leads to actionable, sustainable strategies that help clients grow economically through the application of granular analytics, purpose-built tools and proprietary benchmark data. He regularly publishes and speaks, particularly topics relating to product profitability and growth.​ His teams are responsible for Curinos’ Retail Deposit Optimizer product management and price optimization platform; Deposit Analyzer benchmarking products for Consumer, Wealth and Small Business deposits; LendersBenchmark Analyzers for Small Business Unsecured Lending; rate and fee data for Consumer and Small Business; and strategic consulting practices across the Retail areas. ​

      View all posts Managing Director, Retail Deposits and Lending
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