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Calculate the balance required to fully offset fees

What is the minimum balance you need to hold in your account to offset fees – and what excess cash might you be able to put elsewhere? How will your required minimum balance change if you close three accounts? Or if you negotiate a better earnings credit rate?

These sorts of questions are the nitty gritty of earnings credit rate analysis, but they can meaningfully improve a treasury team’s financial performance. Small shifts can unlock additional idle cash, which can then be put to use in a high-yield investment account. But that’s only possible if teams can analyze such opportunities and identify excess balances.

That’s why we’ve created our Earnings Credit Calculator. It allows treasury teams at governments and nonprofits to quickly analyze potential adjustments to their earnings credit rate calculations so that they can identify new revenue opportunities.

Dive into the calculator below. And, when you’re ready to go deeper, learn how DebtBook’s Bank Fee Analysis capabilities, as part of our Cash Management solution, can streamline your earnings credit rate analysis and help you minimize risk, reduce costs, and grow revenue.

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Definitions

Average Collected Balance (ACB) - The average of the collected balance held every day this month

Reserve Requirement Rate (RRR) - The percentage of deposits that an entity is required to keep in cash as a reserve