In a market where deposit competition is fierce and industry turmoil has placed an increased emphasis on safety, one of the best ways to proactively reassure your most valued customers could be joining a reciprocal deposit network. Per IntraFi’s quarterly survey of bank executives, as of the second quarter of 2025, 87% of institutions reported that deposit competition had worsened or stayed the same compared to the past 12 months, with 93% expecting this trend to continue over the next year. Given this competition, access to millions of dollars of aggregate FDIC insurance across network banks in a reciprocal deposit network can be a valuable tool to any bank. What Do Bank Customers Say About Reciprocal Deposit Networks? Reciprocal deposits (i.e., deposits a bank receives through a deposit network in return for placing a matching amount of deposits at other network banks in increments under the FDIC insurance limit of $250,000) can delight large depositors and bankers alike. Cindy Thomas, a depositor who handles millions of dollars flowing through a property management company in Silver Spring, Maryland, found significant value in the reciprocal deposit products offered by her bank. “[My bank] does all the work for me,” said Cindy. “I’m getting a good rate of return, and it is so easy for me. I can see all the CHOOSING A DEPOSIT NETWORK AND MAXIMIZING ITS VALUE FOR YOUR BANK By Steve Kinner, Senior Managing Director, IntraFi 20
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