Contributor, Benzinga
August 6, 2020

Deposit management can relate to institutional banking and personal banking. Start with our guide for everything you need to know about deposit management. 

We’ll review different types of deposit management, and go over our top picks for the best places for your deposits.

What is Deposit Management

When you make a deposit into a bank, you entrust that bank to safeguard your money. All bank deposits are FDIC-insured for up to $250,000. This includes savings accounts, money market accounts, CDs and checking accounts. Even if your bank suffers a financial blow, your money is insured by the U.S. federal government. 

When you deposit your money into a bank, you can also expect to earn interest on your balance. There are several different ways you can earn interest on your deposit. Most banks will only give you interest on savings accounts, CDs or money market accounts. Some banks will give you interest on your checking account balance.

 It all depends on who you bank with. Make sure to take a look at Benzinga’s guide to banking for expert rankings and analysis of different banks. 

Types of Deposit Management

There are several different types of deposits you can have with a bank. Almost all major banks will offer these kinds of accounts. 

Checking Account

Also known as a current account or a demand deposit, a checking account is what comes to mind when most people think of a bank account. A checking account is where you deposit your money and withdraw it whenever you need it. 

Savings Account

Savings accounts earn interest on the account balance. You’ll still be able to access your money when you need it, but there may be limits to how many withdrawals you can make over a given period of time. You might also be charged a penalty fee if you don’t maintain a minimum balance or a certain number of recurring deposits.

Call Deposit Account

A call deposit account is essentially a checking account that offers interest on your account balance. It allows you to get the best of both worlds from checking accounts and savings accounts. Interest-bearing checking accounts are not always offered by every bank, and you might need to have a premium membership to qualify. 

Money Market Accounts

A money market account is similar to a savings account. You’ll earn an interest rate, but you’ll also incur penalties if you take out too much money or withdraw too frequently. A money market account often pays a higher interest rate over a traditional savings account.

Certificates of Deposit (CDs)

CDs are a timed deposit that earns you a given interest rate over a predetermined amount of time. You can choose from CDs with a time duration of 1 month to a year or even longer. Although you won’t be able to access your money over this period, you will earn a higher interest rate than you would have in a traditional savings account. 

Who Benefits from Deposit Management

When you invest your money into the stock market or buy bonds, there’s always a chance that you can lose that money. With deposit management, your money is always FDIC-insured. 

Keep in mind that money will appreciate at a much slower rate than in the stock market or bond market. Slower growth is ultimately the trade-off for extra security. 

If you don’t mind trading appreciation for more financial security, you could benefit from depositing your money into a bank. Depositing into an interest-bearing savings account, checking account, money market account or CD is 1 of the safest ways to earn a little bit of extra cash without substantial risk. 

Best Places for Deposit Management

Have you decided to deposit your money into an interest-earning bank account? Take a look at some of our favorite places for deposits. 

Axos Bank Savings
Best For
  • No Maintenance Fees
securely through Axos Bank Savings's website

Best Interest-Earning Checking Accounts: Axos Bank

Axos Bank is an online bank with 5 different checking accounts to choose from. And 3 out of these 5 accounts are interest-earning. With an APY that can go up as high as 1.25% , Axos Banks offers some of the most competitive interest rates on checking accounts. 

You can also deposit into high-yield money market accounts, savings accounts and various CDs. Savings accounts can earn up to 1.10% APY and money market accounts can earn up to 0.90% APY. You can choose from CDs with terms that range from 3 months to 60 months. 

First Foundation Bank
securely through First Foundation Bank's website

Best Savings Accounts: First Foundation

First Foundation is a California-based bank that offers an online savings account with 1 of the most competitive interest rates on the market. First Foundation’s APY on savings accounts is 20 times that national average and comes in at 1.20%. Because it’s an online savings account, you access and manage your finances wherever you are through online banking or mobile banking

If you’re looking for additional deposit management options, First Foundation also offers interest-earning checking accounts, CDs, money market accounts and even IRA CDs. You can also access home loans, credit cards and rental property loans. 

CIT Bank
Best For
  • Business and Personal Checking
securely through CIT Bank's website

Best Certificates of Deposits: CIT Bank 

CIT Bank is a digital bank with a large range of savings products. You can deposit in 4 different savings accounts with APYs that can go as high as 0.95%. You can also deposit funds into a money markets account with a 1% APY.

CIT Banks offers a variety of CDs with time frames that range from 6 months to 5 years. You can also opt for an 11-month, no-penalty CD that gives you the flexibility to withdraw your money whenever you need to. 

What to Look for in a Bank

It’s important that you deposit your money with a bank you trust. It’s also important that you deposit into the type of account that will suit your needs best..

Don’t be afraid to shop around for the bank and deposit products best suited to your needs. Start with our guide and list of recommended banks to manage your deposits today.

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