What is “earnings credit”?

Business customers that maintain large balances in their checking accounts can choose to utilize earnings credits to help offset, or reduce, the fees associated with their account. The earnings credit is an interest calculation based on the collected balance of the account and is applied only to offset, or reduce account fees.

For example, Community Bank’s Business Analysis Solution Account is specifically designed to meet the needs of our larger and high-volume business customers. Offsetting fees in the form of an earnings credit leaves them with more money to spend on developing and managing their business.

Earnings credit is based on the daily average collected balance minus the 10% Federal Reserve requirement, times the earnings credit rate, times the number of days in the statement cycle divided by 365 days. Fees that can be offset by the earnings credit include account maintenance, items cleared, ACH items, checks deposited, coin and currency supplied and Remote Deposit Capture fees.

Our goal is to help our businesses do their business better!

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