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#716927 - 04/16/07 07:02 PM Deposit Growth
no doubt Offline
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Joined: Dec 2006
Posts: 6
KS
Does anyone out there have ideas for deposit growth in a small bank? How do we raise our deposit side? Help- any suggestions would be helpful, thanks

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General Discussion
#717119 - 04/17/07 11:24 AM Re: Deposit Growth no doubt
Jokerman Offline
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Brokers.


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#717131 - 04/17/07 12:25 PM Re: Deposit Growth Jokerman
CheshireAliCat Offline
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Posts: 125
NJ
Do you offer referral incentives? Especially for tellers...

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#717149 - 04/17/07 12:54 PM Re: Deposit Growth CheshireAliCat
Rocky P Online
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Florida
J & TA had great ideas. You will have to spend more money, either in terms of advertising, incentives or interest. If you have a large board, or numerous (local) shareholders, come up with a plan to offer them special rates (a few basis points higher).

Also check with your CFO to determine what types of deposits are needed for ALCO. The bank usually has to match the terms on deposits and loans. Do you need checking, or long term CD's? Then price that product to create an interest.
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#717161 - 04/17/07 01:06 PM Re: Deposit Growth Rocky P
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Consider some additional features on existing products. Banks in our area offer tiered rates based on the $ amount of hte CD, bump up CDs where the customer can add money to the CD after account opening at the same rate as the original CD, incentives for opening new accounts, etc. These have now become standard fare in our area so creative marketing becomes the key to getting customers.

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#717565 - 04/17/07 07:12 PM Re: Deposit Growth blue
no doubt Offline
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KS
I think the main thing we need to do is increase the deposits.
THanks for the great ideas here, what would some referral incentives be for the tellers>??????

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#717609 - 04/17/07 07:39 PM Re: Deposit Growth blue
Dazed and Confused Offline
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Big XII South
In addition to the good ideas already provided ... you could "encourage" your business loan customers to maintain deposits with your institution ... and the encouragement could be in the form of lowering the interest rate on their loans.

Brokers help increase deposits in the short-run ... but from my observations ... it seems that regulators generally don't want community banks to place a lot of dependence on non-core deposits to fund loan growth ... and for good reason.

And a "tried and true" method is to establish relationships with customers and establish "brand loyalty." This does not generate immediate results ... but you should reap benefits in the long run. Most customers won't chase rates if they have a good relationship with their bank.

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#717664 - 04/17/07 08:59 PM Re: Deposit Growth Dazed and Confused
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Thank you for all your help~~~ that is why I love this sight, there is always great help!! thanks again!!

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#717681 - 04/17/07 09:19 PM Re: Deposit Growth CheshireAliCat
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Do you have any ideas for incentives for the tellers for deposit growth. That is interesting to me, I can't think of anything, what do you have? Thanks

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#717736 - 04/18/07 03:40 AM Re: Deposit Growth no doubt
8675309 Offline
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Posts: 1,115
Where the wind comes sweeping ...
The last place I would look to for deposit growth would be the tellers, but that said we give all our employees including tellers $20 per checking account they refer and $10 per savings and IRA. Not that I have anything against tellers, it's just that the vast majority of the people they see each day have deposit accounts with your institution.

We have lots of all employee contests like for each product referral your name goes in a hat for a trip to Vegas and everyone who refers 4 or or more new checking accounts during the year splits $1,000.

Do you have a marketing officer? If not, you might talk to a local printer about doing some marketing consulting. If you are not already doing targeted direct mail, a customer referral program, and a gift with a new account, I would suggest looking at those type of deposit-generators.

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#718286 - 04/18/07 09:24 PM Re: Deposit Growth 8675309
Dazed and Confused Offline
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Big XII South
Another thought ... some banks have arrangements with local school districts and allow young students to open accounts (i.e. piggy banks) and learn about the banking system. This starts them young ... (and gets their parents involved) .....

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