Interest on Business DDA

Seems like we are seeing more business checking with interest accounts...  ​https://www.depositaccounts.com/checking/business-checking-accounts.html

Has anyone found a great way to deal with interest on business checking accounts?

Our marketing people think it is an opportunity.

Our operations people think it should have a transparent decision tree to be sure we get everyone in the "right" account.

Our finance people are thinking about the price-elasticity of demand.

I am cautiously thinking about all of this, but also that this is an opportunity for deeper conversations by relationship managers where they may be able to gather more information about these businesses whether existing or prospects that want interest-bearing checking rather than just making it another operational account option.

What have you explored or considered exploring now that Fed Funds are 2.00%?

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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 02-03-2018 14:36
From: Neil Stanley
Subject: Interest on Business DDA

​Would anyone like to share their bank's strategies today about interest bearing business demand deposit accounts?  Since the repeal of the prohibition in 2011 interest rates are now at a level that we can expect questions from business owners.  How are you dealing with these business account holders?

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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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