DEPOSITS: X Gon' Give It To Ya

Research evidence excerpt

DEPOSITS: X Gon' Give It To Ya

Truist Securities

Equity Research Report July 1, 2026

FINANCIALS: Banks

X Money going out with a 6% rate has re-ignited the online deposit debate. It isn’t

Brian Foran new – press reports started in March, Revolut already offers 5.5%, and brokers pay

212-303-4146 big sign-up bonuses. Still, it is hard to ignore that competition is increasingly crowded.

Brian.Foran@truist.com Encouragingly, traditional platforms like Ally, Amex, Synchrony and CapOne have been

able to pay (40)bp below market and cut rates by (30)bp ytd, including cuts in June.

Erin Kim That said, it is a risk as a +25bp move in rate paid is (5)% of earnings on average. Ally

212-303-4151 is highest at (14)% given a combo of lower NIM and high reliance on online savings;

Erin.Kim@truist.com First Citizens also warrants a mention given forced deposit growth.

Chris Lian

212-303-4199

Chris.Lian@truist.com Deposit Backdrop

So far this year deposits have actually been a positive story, both for the industry overall 13 Page Document and online deposit platforms specifically.

Starting with the industry, deposit growth has averaged 8.5% so far this year, better than

Reasons for this report the low- to mid-single digit pace most banks guided to. There was some benefit from

elevated tax refunds and as that reverses out the June growth rate is slowing. Moreover,

✓ Sector Read-Throughs growth rates were most elevated at brokers and trust banks, with most traditional banks

✓ Quick Reaction to Newsflow/Volatility reporting a bit lower than the industry data. Still, the overall environment for deposit

growth has been better than expected.

Exhibit 1 - Industry deposit growth better than expected

YTD

14%

Deposit Growth at US Banks

12%

10%

YTD average is 8.5%, v.

expected low to mid