Core Deposits

What are 'Core Deposits'

Core deposits are the deposits made in a bank's natural demographic market. Banks count on core deposits as a stable source of funds for their lending base. Core deposits offer many advantages to banks, such as predictable costs and a measurement of the degree of customer loyalty.

BREAKING DOWN 'Core Deposits'

In addition to the advantages mentioned above, core deposits are generally less vulnerable to changes in short-term interest rates than CDs or money market accounts. Core deposits also encompass small denomination time deposits, as well as checking accounts. Banks can increase their core deposits with local marketing and customer incentives.

RELATED TERMS
  1. Deposit Slip

    A small written form that is sometimes used to deposit funds ...
  2. Descriptive Statement

    A bank statement that lists deposits, withdrawals, fees, etc. ...
  3. Deposit

    1. A transaction involving a transfer of funds to another party ...
  4. Retail Banking

    Typical mass-market banking in which individual customers use ...
  5. Automated Teller Machine - ATM

    An electronic banking outlet, which allows customers to complete ...
  6. Debit Card

    An electronic card issued by a bank which allows bank clients ...
Related Articles
  1. Retirement

    Tired Of Banks? Try A Credit Union

    These nonprofit organizations can provide a range of services for lower fees.
  2. Savings

    Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  3. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  4. Entrepreneurship

    When Wholesale Funding Goes Bad

    The wholesale funding process is extremely dependent on the credit markets. Therefore, it is not always the best option for a business.
  5. Active Trading Fundamentals

    Wells Fargo's 3 Key Financial Ratios (WFC)

    Look at some of most important financial ratios for with Wells Fargo & Co. and understand why they are so important for analyzing the bank's core business.
  6. Investing News

    4 Key Takeaways From Wells Fargo's Earnings Report

    Wells Fargo is in a position of strength because of its low exposure to oil, smaller capital requirements, Fed actions and a robust domestic economy.
  7. Investing

    Why Banks Don't Need Your Money to Make Loans

    Contrary to the story told in most economics textbooks, banks don't need your money to make loans, but they do want it to make those loans more profitable.
  8. Credit & Loans

    Check Your Checking-Account History

    Something you never thought you’d have to worry about: whether a bank will grant you a checking account. If you’ve had too many overdrafts, it might not.
  9. Economics

    What is Regulation W?

    Regulation W sets the terms for transactions between banks and their affiliates.
  10. Investing News

    Bitcoin vs. Big Finance (opinion)

    Bitcoin and big finance occupy parallel universes of value, cooperation, and trust. Understanding these differences helps to decipher the meaning behind the blockchain news cycle and how to recognize ...
RELATED FAQS
  1. How does a depository bank benefit from issuing an ADR for a foreign company for ...

    For domestic investors the benefits of increasing the portion of their portfolio that they invest in foreign companies is ... Read Answer >>
  2. Will Netspend cards let you overdraw your account?

    Discover if NetSpend debit cards allow you to overdraw your account. Learn how to enroll in NetSpend's overdraft protection ... Read Answer >>
  3. Does the FDIC cover business accounts?

    Learn what types of business accounts are insured by the FDIC, and find out how much of the deposits made by a business are ... Read Answer >>
  4. How can I avoid escheatment of my bank account?

    Learn how to avoid escheatment of a dormant bank deposit by logging on to your online account, calling your bank or making ... Read Answer >>
  5. Are bank accounts escheatable?

    Learn why it is important to keep in contact with every financial institution you deal with to make sure your assets are ... Read Answer >>
  6. How does your checking account affect your credit score?

    Learn how your checking account is related to your credit score, as well as what types of banking activities do and do not ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center