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Does It Matter Where I Keep My Bank Deposits? 


When evaluating banking relationships, small business leaders often think about lending first. That’s because, as you know, access to reliable capital on a timely basis is the life blood of a business. However, deposits are crucial pieces of the puzzle as well.

Banks take deposits into consideration when making credit decisions. Not only do deposits provide direct evidence of a business’s liquidity on hand, but having your operating account at your primary lending institution gives your bank insight into potential credit needs. By monitoring deposit trends, your banker can anticipate seasonal cash flow requirements, and it may also spur discussions about additional capacity needs prior to the business realizing it. Having a complete, holistic banking relationship, including loans, deposits, and treasury services, allows your bank to provide the service your business requires to succeed.

Your deposits can also support your community. By banking locally with a community bank like Midwest BankCentre, your deposits are kept in the region. They become the source of loans for your neighbors to buy homes, start or scale businesses, fund educations, or meet personal financial needs. Each deposit dollar will circulate through your local economy six times on average. This leads to new jobs, more business, and new tax revenues which support our schools and public services. 

So, yes, where you keep your deposits matters. Where you bank matters. It impacts not only your business’s success, but also your community’s.

Originally published in  Small Business Monthly's October  issue of 2023 by Pete Zeiser, President - Chesterfield Commercial at Midwest BankCentre.