What’s In Your Rate?

| August 22, 2017

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Over the past several weeks, I have heard varying comments by our public and higher Ed clients about the level of the Earnings Credit Rates (ECR) currently offered by their banks to cover banking services and transaction fees.


What's In Your Rate?


You should understand that ECR levels vary on a number of factors:

  1. The size of the entity’s relationship with its bank(s)

  2. The size of deposits being held by the bank, and the ratio of operating vs. non-operating deposits.

  3. The potential for new banking services that could be implemented.

  4. How proactive and open the entity’s dialogue is with its banker(s) about ECRs—especially with short-term rates on the rise.

We recommend our clients verify all their banking costs and ECRs on a monthly basis by carefully reviewing their banking analysis statements.

At three+one we can help public and higher Ed entities properly analyze their Earnings Credit Rates and provide insightful marketplace comparisons. By doing so, entities can cost effectively maximize their banking services and build stronger banking relationships.

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