Core/Retail

In today’s volatile marketplace, banks looking for financially productive and viable sources of funding welcome deposits obtained through National CD Rateline. Considering them to be non-brokered status, these bankers classify such funding as core deposits.

And the FDIC backs them up in this assessment. The FDIC classifies a rate board as a “non-brokered listing service’ if it meets certain criteria:

• It must charge clients subscription fees only.
• No fees will be levied based on the number or dollar value of CDs placed.
• The rate board performs no services for clients except the gathering and transmission of information.
• It is not involved in placing deposits.

National CD Rateline qualifies on all counts. Core deposits are typically thought of as lower cost funding sources that lag behind other sources in the need for re-pricing during a period or rising interest rates.

However, the core issue remains where to find funding that will withstand the uncertainties of today’s market. It is far truer in the mega-markets that hold sway in modern economies that Jumbo CD time-deposits have proven to be the more relatively stable funding sources… and the most fiscally productive.