Deposit Strategy in a Rate-Cut Cycle: A New Spin

Deposit strategy in an easing cycle isn’t as straightforward as it used to be. With younger consumers rate-shopping in minutes and older customers behaving very differently, some community banks are rethinking the traditional “cut deposit rates fast” playbook. Experts say the winners will be the banks that truly understand which customers are rate-sensitive, which aren’t, and how to use segmentation—not across-the-board cuts—to keep deposits stable. This cycle is testing old assumptions; the full article breaks down the shifts shaping deposit strategy now.