Take charge of your deposit pricing & avoid "peeking over the fence" for rates.
Studies show that there was no uniform nor apparent strategy which can be linked to the methodology that credit unions use to price their deposit rates. In fact the most common deposit pricing methodology is a look at rates offered by the competition.
Statistical analysis of Liquidity, Loan to Share ratios and deposit patterns guided TCT to the creation of the Dividend Payout ratio.
TCT's Dividend Payout ratio calculates a dividend budget that is healthy for your credit union.
The Dividend Payout ratio provides a Stochastic Pricing model derived from statistical information. Using the Dividend Payout Ratio in deposit pricing structure steers credit unions away from peer and market observation and more toward pricing based on both strategy and the institution's current ALM position.