Discover more about these crucial trends shaping the financial industry and adapt your strategy today.
Register for our 2025 State of U.S. Deposits Quarterly webinar series.
Register Now
Key Small Business Deposit Trends
Interest rate impacts: Historical data shows federal funds rates exceeding 2% hinder small business deposit growth, as businesses prioritize cash for operations rather than savings.
With anticipated rate cuts, year-end projections suggest declines may stabilize to -1% to -2%.
Signs of recovery
Federal Funds (end of 2025)
Checking balances grew +0.2% YTD, MMDAs +1.9%, CDs +6.1%.
Deposits are up 0.4% YTD (2025), rebounding from -0.3% in 2024.
checking balances
Deposits
0% to +1%
Small Business Deposit Balance Growth:
-1% to -2%
Small Business Deposit Balance Growth:
-3% to -4%
Small Business Deposit Balance Growth:
3.00% to 3.35%
3.75% to 4.00%
Hold rates
3.00% to 3.35%
3.75% to 4.00%
Hold rates
Digital impact
of promotions are now delivered online.
Nearly 50%
Key Consumer Deposit Trends
Gen Z (16%) and millennials (39%) dominate new account openings, favoring digital channels.
Digital accounts with cash offers outperform branch-incentivized accounts by 2.5x, driven by Millennials and Gen Z who value convenience, speed and the ease of digital interactions
Federal Funds (end of 2025)
Generational shifts
gen z
millennials
16%
39%
3% to 4%
Consumer Deposit Balance Growth:
2% to 3%
Consumer Deposit Balance Growth:
1% to 2%
Consumer Deposit Balance Growth:
3.00% to 3.35%
3.75% to 4.00%
Hold rates
3.00% to 3.35%
3.75% to 4.00%
Hold rates
Consumer deposits expected to grow between 2% and 3% in 2025 if federal funds rates drop further.
Checking balances are improving from -5.8% in 2024 to -1% YTD in 2025.
Savings and MMDA accounts show steady performance because of slowing CD renewals.
Deposit growth projections
Prevailing Banking Trends
Interest rate impacts: Anticipated rate reductions haven’t materialized, causing disruptions across banking.
Top challenges
Cash incentives on the rise with mixed results
of new checking accounts are tied to cash incentives.
17%
of offers are $300+, but promo accounts average lower balances ($2,500 vs. $4,100).
67%
of offers are $300+, but promo accounts average lower balances ($2,500 vs. $4,100).
67%
of new checking accounts are tied to cash incentives.
17%
Enhancing technology integration and customer-centric digital experiences are ways to attract new customers and support deposit balance growth.
Key opportunity
Operational efficiency
Customer acquisition
Deposit growth
Operational efficiency:
Optimizing workflows is crucial amidst economic uncertainty and high interest rates
Customer acquisition:
Increased competition for fewer new customers
Deposit growth:
Federal funds rates > 2% lead to deposit declines
Halfway through 2025 and consumer deposits are on the rise, while small business deposits continue to face pressure against higher federal funds rates. Federal Reserve policies will continue to play a key role in influencing these trends throughout the rest of 2025, impacting strategies across the financial landscape.
ProSight’s latest insights, gathered from the top 20 U.S. consumer and leading direct banks, highlight critical deposit market shifts.
Check out these highlights from the June 2025 State of U.S. Deposit Market webinar.
View Webinar
State of U.S. Consumer and Small Business Deposit Trends
Discover more about these crucial trends shaping the financial industry and adapt your strategy today.
Register for our 2025 State of U.S. Deposits Quarterly webinar series.
Register Now
Key Small Business Deposit Trends
Interest rate impacts: Historical data shows federal funds rates exceeding 2% hinder small business deposit growth, as businesses prioritize cash for operations rather than savings.
With anticipated rate cuts, year-end projections suggest declines may stabilize to -1% to -2%.
Signs of recovery
Federal Funds (end of 2025)
Deposits are up 0.4% YTD (2025), rebounding from -0.3% in 2024.
Deposits
Checking balances grew +0.2% YTD, MMDAs +1.9%, CDs +6.1%.
checking balances
0% to +1%
Small Business Deposit Balance Growth:
-1% to -2%
Small Business Deposit Balance Growth:
-3% to -4%
Small Business Deposit Balance Growth:
3.00% to 3.35%
3.75% to 4.00%
Hold rates
3.00% to 3.35%
3.75% to 4.00%
Hold rates
Consumer deposits expected to grow between 2% and 3% in 2025 if federal funds rates drop further.
Checking balances are improving from -5.8% in 2024 to -1% YTD in 2025.
Savings and MMDA accounts show steady performance because of slowing CD renewals.
Key Consumer Deposit Trends
Gen Z (16%) and millennials (39%) dominate new account openings, favoring digital channels.
Digital accounts with cash offers outperform branch-incentivized accounts by 2.5x, driven by Millennials and Gen Z who value convenience, speed and the ease of digital interactions
Deposit growth projections
Federal Funds (end of 2025)
Generational shifts
Digital impact
of promotions are now delivered online.
Nearly 50%
gen z
millennials
16%
39%
3% to 4%
Consumer Deposit Balance Growth:
2% to 3%
Consumer Deposit Balance Growth:
1% to 2%
Consumer Deposit Balance Growth:
3.00% to 3.35%
3.75% to 4.00%
Hold rates
3.00% to 3.35%
3.75% to 4.00%
Hold rates
Prevailing Banking Trends
Interest rate impacts: Anticipated rate reductions haven’t materialized, causing disruptions across banking.
Key opportunity
Cash incentives on the rise with mixed results
Enhancing technology integration and customer-centric digital experiences are ways to attract new customers and support deposit balance growth.
of offers are $300+, but promo accounts average lower balances ($2,500 vs. $4,100).
67%
of new checking accounts are tied to cash incentives.
17%
Operational efficiency
Customer acquisition
Deposit growth
Operational efficiency:
Optimizing workflows is crucial amidst economic uncertainty and high interest rates
Customer acquisition:
Increased competition for fewer new customers
Deposit growth:
Federal funds rates > 2% lead to deposit declines
Top challenges:
Halfway through 2025 and consumer deposits are on the rise, while small business deposits continue to face pressure against higher federal funds rates. Federal Reserve policies will continue to play a key role in influencing these trends throughout the rest of 2025, impacting strategies across the financial landscape.
ProSight’s latest insights, gathered from the top 20 U.S. consumer and leading direct banks, highlight critical deposit market shifts.
Check out these highlights from the June 2025 State of U.S. Deposit Market webinar.
View Webinar
State of U.S. Consumer and Small Business Deposit Trends