Free calculator · bank treasury, CFO, ALCO
Deposit pricing decision: Defend, Match, or Lead
Price holding, matching, or beating the market rate on a bank's deposits: annual cost, balances at risk, breakeven retention, and sensitivity. No account or key needed. Every number is labelled filed, derived, or assumed.
Example
STIFEL BANK&TRUST holds $16.47B of savings deposits (money market and other savings) at a current cost of 1.74%, against a market rate of 0.63% (FDIC reference). Defend, Match, and Lead cost the same on these assumptions, because the bank already pays at or above the market rate. Balances at risk: Defend $0k, Match $0k, Lead $0k. Inputs: Deposit category to price: Savings deposits (money market and other savings); Market rate to match: source-derived; Lead premium over the market: 25; Share of the category you would reprice: 100; Runoff when you pay the market rate: 5; Extra runoff per 100bp below the market: 10; Replacement funding spread over Fed funds: 25.
Deposit pricing decision: Defend, Match, or Lead
Price holding, matching, or beating the market rate on a bank's deposits: annual cost, balances at risk, breakeven retention, and sensitivity.
STIFEL BANK&TRUST holds $16.47B of savings deposits (money market and other savings) at a current cost of 1.74%, against a market rate of 0.63% (FDIC reference). Defend, Match, and Lead cost the same on these assumptions, because the bank already pays at or above the market rate. Balances at risk: Defend $0k, Match $0k, Lead $0k.
- Savings deposits (money market and other savings), period-end balance
- $16.47BFiled
- Balance repriced in this decision
- $16.47BDerived
- Current cost of the category · Schedule RI interest over Schedule RC-K average balance, latest quarter annualized
- 1.74%Derived
- Market rate used · Reference only: FDIC national money market and savings rates, weighted by this bank's filed money market and other-savings balances
- 0.63%Assumed
- Lead premium over the market
- +25.0 bpAssumed
- Runoff when paying the market rate
- 5.00%Assumed
- Extra runoff per 100bp below the market
- 10.00%Assumed
- Replacement funding rate · Fed funds plus the spread you set
- 3.88%Assumed
- Defend rate
- 1.74%Derived
- Defend: balance at risk
- $0kDerived
- Defend: annual funding cost
- $285.7MDerived
- Match rate
- 1.74%Derived
- Match: balance at risk
- $0kDerived
- Match: annual funding cost
- $285.7MDerived
- Lead rate
- 1.74%Derived
- Lead: balance at risk
- $0kDerived
- Lead: annual funding cost
- $285.7MDerived
- Match versus Defend, annual cost
- $0kDerived
- Lead versus Defend, annual cost
- $0kDerived
- Cheapest option
- Defend, Match, Lead tieDerived
- Match: share of balances retained on your assumptions
- 100.00%Assumed
- Lead: share of balances retained on your assumptions
- 100.00%Assumed
- Match: retention needed to cost the same as Defend · No retention level can pay for this option
- n/aDerived
- Lead: retention needed to cost the same as Defend · No retention level can pay for this option
- n/aDerived
- Match beats Defend once extra runoff per 100bp below the market exceeds · No sensitivity up to 100% per 100bp changes the ranking
- n/aDerived
- Lead beats Defend once extra runoff per 100bp below the market exceeds · No sensitivity up to 100% per 100bp changes the ranking
- n/aDerived
| Rank | Option | Rate paid | Balances leaving | Balance at risk | Annual funding cost | Versus cheapest |
|---|---|---|---|---|---|---|
| 1 | Defend (hold today's rate) | 1.74% | 0.00% | $0k | $285.7M | $0k |
| 1 | Match (meet the market rate) | 1.74% | 0.00% | $0k | $285.7M | $0k |
| 1 | Lead (price above the market) | 1.74% | 0.00% | $0k | $285.7M | $0k |
| Assumption changed | Cheapest option | Defend cost | Match cost | Lead cost |
|---|---|---|---|---|
| As entered | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Runoff sensitivity halved | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Runoff sensitivity doubled | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Market rate 50bp lower | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Market rate 50bp higher | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Replacement funding 50bp cheaper | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Replacement funding 50bp costlier | Defend, Match, Lead (tie) | $285.7M | $285.7M | $285.7M |
| Category | Period-end balance | Share of domestic deposits | Current annualized cost |
|---|---|---|---|
| Noninterest-bearing demand deposits | $884.7M | 5.05% | n/a |
| Interest-bearing transaction accounts | $176.0M | 1.00% | 0.86% |
| Savings deposits (money market and other savings) | $16.47B | 93.95% | 1.74% |
| Time deposits of $250,000 or less | $0k | 0.00% | n/a |
| Time deposits of more than $250,000 | $0k | 0.00% | n/a |
| Reference | Rate |
|---|---|
| FDIC national interest checking (2026-09) | 0.07% |
| FDIC national savings (2026-09) | 0.37% |
| FDIC national money market (2026-09) | 0.63% |
| FDIC national 12-month CD (2026-09) | 1.73% |
| Fed funds rate (replacement funding base) | 3.63% |
Filed: Reported directly in the bank's FFIEC Call Report. Derived: Calculated by OptimaYield from filed figures using the method described below. Assumed: An assumption you entered or a scenario input, not a reported figure.
Questions and answers
What do Defend, Match, and Lead mean?
Defend keeps your current rate and accepts the runoff that follows. Match raises the rate to the market rate. Lead prices a premium above the market to keep or win balances. The calculator prices all three on the same balance and ranks them by annual cost.
What is breakeven retention?
It is the share of balances a higher-rate option must keep to cost the same as Defend, given your replacement funding cost. If your expected retention is above the breakeven, the higher rate pays for itself; if the breakeven is above 100%, it cannot.
Where do the balances and current cost come from?
Balances are the bank's period-end deposit categories in Schedule RC-E of its Call Report. Current cost is Schedule RI interest expense annualized over Schedule RC-K average balances for the same category. Both are filed data.
Why is runoff an input instead of a result?
No public filing reports how balances respond to a rate change, so inventing a behavior would be false precision. You set the assumption, and the sensitivity table shows where the decision flips.
Why does the tool use FDIC national rates?
They are the only free, public, regularly updated deposit rate averages by product. They are a labelled reference when you have not entered your own market rate.
Use it from code or an AI assistant
The same calculation is available as a free JSON and CSV API, an OpenAPI description, and a remote MCP server, so analysts, scripts, and AI assistants get identical numbers.
curl "https://www.optimayield.com/api/tools/deposit-pricing-decision/run?certificate=57311"- Machine-readable definition and input schema
- OpenAPI description
- MCP server:
https://www.optimayield.com/api/mcp(tool namedeposit_pricing_decision) - llms.txt
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