Financial research concept

Bank Interest-Bearing Deposit Rate: Average Rate Paid on Priced Deposits

Bank interest-bearing deposit rate measures deposit interest expense relative to average interest-bearing deposits, isolating pricing on deposits with explicit interest cost.

By Lee BaileyPublished Sep 21, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 21, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 14 connected conceptsPart of the reviewed Bank Balance Sheet and Returns; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

Why it differs from total cost of deposits
What moves the rate
Part of the Bank Balance Sheet and Returns
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Bank interest-bearing deposit rate measures the average rate paid on deposits that carry explicit interest expense.

Interest-Bearing Deposit Rate =
Annualized Deposit Interest Expense ÷ Average Interest-Bearing Deposits

Why it differs from total cost of deposits

Cost of Deposits may use total deposits as the denominator, including noninterest-bearing deposits.

The interest-bearing deposit rate isolates only priced deposits, which makes it useful when deposit mix is changing.

What moves the rate

Key drivers include policy rates, competitive pricing, deposit mix, certificates of deposit, promotional rates, customer concentration, and migration from noninterest-bearing products.

PNC reports average interest-bearing deposits, deposit interest expense, and the corresponding average rate.

Source:

PNC 2025 Annual Report

The interest-bearing deposit rate measures pricing on interest-bearing deposits, not the economic cost of the entire deposit franchise.

Part of the Bank Balance Sheet and Returns

Connect average loans and deposits, earning-asset yields, deposit pricing and mix, tangible common equity, shareholder returns, and early problem-asset signals to understand bank balance-sheet economics.

Browse the full operating model in Company Analysis →

Where this concept fits

Average balance and spread engineCurrent relationship
Average loans, deposits, and interest-earning assets align balance-sheet scale with the period that generated earnings. Asset and loan yields show gross pricing, while interest-bearing deposit rates, noninterest-bearing deposit mix, and interest rate spread show how funding composition and pricing affect the spread engine.
Bank Average Deposits Average Interest-Earning Assets Bank Average LoansInterest-Bearing Deposit RateCurrent conceptInterest-Earning Asset Yield Bank Interest Rate Spread Bank Loan Yield Noninterest-Bearing Deposit Mix
Tangible capital and shareholder returns
Tangible common equity removes specified intangible assets from common equity, tangible book value expresses that capital per share, and ROTCE shows profitability relative to average tangible common equity under the issuer's reconciliation. Generic ROA and ROE remain owned by their existing canonical encyclopedia pages rather than duplicated here.
Return on Tangible Common Equity Tangible Book Value per Share Bank Tangible Common Equity
Credit deterioration ladder
Criticized assets can identify elevated weakness before default, classified assets generally represent more severe adverse grades, and nonperforming assets capture loans and other assets that have reached nonperforming status. Issuer definitions and denominators differ, so the three measures form a diagnostic sequence rather than a standardized formula.
Classified Assets Ratio Criticized Asset Ratio Nonperforming Assets Ratio

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

PNCOpen operating-model research →7 of 14 reviewed concepts in Bank Balance Sheet and ReturnsAverage balance and spread engine7 of 8 bridge concepts supportedContinue through this bridge:Average Interest-Earning Assets Bank Average Deposits Bank Average Loans Bank Interest Rate Spread Bank Loan Yield Interest-Earning Asset Yield

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