Financial research concept

Bank Noninterest-Bearing Deposit Mix: Low-Cost Funding Share

Bank noninterest-bearing deposit mix measures the share of deposits that carry no explicit interest rate, helping investors assess funding quality and rate sensitivity.

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: 2 reviewed companiesRelationships reflect supported examples, not a normalized cross-company KPI ranking.

Why the mix matters
Filing examples
Part of the Bank Balance Sheet and Returns
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Bank noninterest-bearing deposit mix measures the share of total deposits that do not carry an explicit interest rate.

Noninterest-Bearing Deposit Mix =
Noninterest-Bearing Deposits ÷ Total Deposits

Why the mix matters

Noninterest-bearing balances can lower a bank's reported deposit cost and reduce immediate repricing pressure when market rates rise.

They are not free in an economic sense. Banks still incur operating, technology, service, and liquidity costs to retain deposit relationships.

Customers can also move balances into higher-yielding products when rates rise, increasing funding costs even if total deposits remain stable.

Filing examples

U.S. Bancorp reports noninterest-bearing and interest-bearing deposit composition. Fifth Third separately discusses average demand deposits and interest checking deposits.

Sources:

Noninterest-bearing deposit mix is a funding-quality measure. Pair it with Deposit Beta, Cost of Deposits, and average deposits.

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 Loans Interest-Bearing Deposit Rate Interest-Earning Asset Yield Bank Interest Rate Spread Bank Loan YieldNoninterest-Bearing Deposit MixCurrent concept
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

Bank Average Deposits
Average Interest-Earning Assets
Bank Average Loans
Classified Assets Ratio
Criticized Asset Ratio
Interest-Bearing Deposit Rate
Interest-Earning Asset Yield
Bank Interest Rate Spread
Bank Loan Yield
Noninterest-Bearing Deposit MixCurrent concept
Nonperforming Assets Ratio
Return on Tangible Common Equity
Tangible Book Value per Share
Bank Tangible Common Equity

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.

FITBOpen operating-model research →5 of 14 reviewed concepts in Bank Balance Sheet and ReturnsAverage balance and spread engine3 of 8 bridge concepts supportedContinue through this bridge:Bank Average Deposits Bank Average Loans
USBOpen operating-model research →6 of 14 reviewed concepts in Bank Balance Sheet and ReturnsAverage balance and spread engine3 of 8 bridge concepts supportedContinue through this bridge:Bank Average Deposits Bank Average Loans

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These companies are linked to at least two other reviewed concepts in the same operating model, but are not currently linked to this concept. This is broader research navigation, not evidence that the company reports an equivalent metric.

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