--- title: The End of the Great Deposit Migration, (Hopefully) and Finally! description: Deposit trends are shifting again. What does that mean for your funding mix, cost of funds, and IRR assumptions? image: https://blog.plansmith.com/hubfs/Board%20Presentation.png --- [CALL TOLL-FREE 1-800-323-3281](https://www.plansmith.reachproductions.net/project/call-toll-free-1-800-323-3281/) [![Plansmith](https://blog.plansmith.com/hs-fs/hubfs/Plansmith-Logo.png?width=764&height=135&name=Plansmith-Logo.png "Plansmith")](https://www4.plansmith.com) - Solutions - [Budgeting](https://www4.plansmith.com/budgeting/) - [ALM](https://www4.plansmith.com/alm) - [ALM Advisory Services](https://www4.plansmith.com/alm/advisory-services/) - [CECL](https://www4.plansmith.com/cecl/) - [Strategy](https://www4.plansmith.com/strategy/) - [Market Intelligence](https://www4.plansmith.com/market-intelligence/) - Products - [StrategyGPS](https://www4.plansmith.com/strategygps/) - [Compass](https://www4.plansmith.com/compass/) - [BankersGPS](https://www4.plansmith.com/bankersgps/) - Resources - [Blog](https://blog.plansmith.com/) - [Videos](https://plansmith.wistia.com/projects/7qemazkqii) - [Compass Tutorials](https://info.plansmith.com/compass-tutorials) - [Lunch N’ Learn](https://info.plansmith.com/lunch-n-learns) - [Webinars](https://www4.plansmith.com/webinars/) - [About](https://www4.plansmith.com/about/) - [Schedule A Discovery Call](https://www4.plansmith.com/contact-us/) - [CALL TOLL-FREE 1-800-323-3281](tel:8003233281) # Plansmith Blog # The End of the Great Deposit Migration, (Hopefully) and Finally! Posted by [Dave Wicklund](https://blog.plansmith.com/author/dave-wicklund) on 11/2/26, 6:47 AM - [Tweet](https://twitter.com/share) **The History** Over the past fifteen years here at Plansmith, I’ve written several articles and blogs about deposit trends, and more specifically surge deposits. In fact, early in 2020, I went so far as to declare the end of the post-recession-era surge deposits, only to see a massive resurgence of surge balances that same year as deposit growth, especially non-maturity deposits, exploded driven by pandemic-era uncertainty and stimulus checks. This left consumers holding massive amounts of money in highly accessible bank checking, savings, and money market accounts, which surged by over $2.6 trillion (32%) in a single year (2020). At the same time, retail CD balances fell by $700 billion (34%) as CD rates bottomed out leaving depositors no reason to tie their funds up in maturing deposits. Almost overnight, the banking system was flush with deposits and overloaded with liquidity. In turn, funding costs hit rock-bottom (0.48% in 2020 and 0.24% in 2021), easing the impact that falling market rates had on earning asset yields. To combat the inflationary impact of all that stimulus money in the economy, the Federal Reserve aggressively raised interest rates in 2022 and 2023. Those market rate increases, combined with system-wide core deposit outflow following the high-profile bank failures of early 2023, sent financial institutions scrambling to patch liquidity holes and stabilize their balance sheets. CD rates shot up to near, and even exceeded, 5% in many markets, driving savers to move massive amounts of money out of low-yield non-maturity accounts and lock them into much higher costing CDs. *The Great Deposit Migration had begun*. By the time the dust settled at year-end 2024, CD volumes had more than doubled (up $1.3 trillion) and non-maturity deposit balances had fallen by a more staggering $1.7 trillion. To no surprise, funding costs jumped nearly tenfold from their 2021 low to 2.06% in 2024, and pretty dark days, at least from a cost of funds perspective, were upon us. So, where are we now, and what does this all mean to you as you try to manage your funding mix - and more importantly, control your cost of funds? The bad news is that deposit competition remains fierce and funding costs are still pretty high. The good news is that the Great Deposit Migration appears to be over, and any depositor that was going to move their money from a lower costing non-maturity deposit category to CDs in search of higher yields has probably done it. CD balances have stabilized and non-maturity deposit balances are off and growing again. In fact, annual non-maturity deposit growth averaged 6% in 2024, 2025, and the first half of 2026, even slightly above the 5% average annual growth rate experienced in the four years prior the Pandemic. That, combined with the aforementioned decline in CD rates, has us all hopeful that funding costs will retreat and earnings can climb. **How Stable Are Your Deposits?** Be ready for that question at exams. The chart below shows trends for the aggregate deposit balances of all US banks from 2015 through June 30, 2026. I’d bet that the chart for your financial institution would look very similar to this, with much lower dollar levels, of course. ![](https://blog.plansmith.com/hs-fs/hubfs/undefined.jpeg?width=780&height=392&name=undefined.jpeg) Knowing how your deposits have moved and having reasonable assumptions for both deposit pricing and deposit stability (aka “Decay Rates”) is paramount for both budgeting and IRR modeling. Not only are those items critical to making sound business decisions, but they also continue to be major points of emphasis at Regulatory exams. If you need any help in either of those areas, [**reach out to our Advisory Team**](https://share.hsforms.com/1qXsn2LH6S6GAQyqw22QVQw1enno) to schedule a time to further discuss how we can help you better incorporate the deposit trends you’re seeing at your institution into your budgeting and IRR modeling.   Dave Wicklund *Managing Director - Advisory Services*   Topics: [strategic thinking](https://blog.plansmith.com/topic/strategic-thinking), [community bank forecasting](https://blog.plansmith.com/topic/community-bank-forecasting), [community bank planning](https://blog.plansmith.com/topic/community-bank-planning), [leadership](https://blog.plansmith.com/topic/leadership), [credit union planning](https://blog.plansmith.com/topic/credit-union-planning), [asset liability management](https://blog.plansmith.com/topic/asset-liability-management), [budgeting](https://blog.plansmith.com/topic/budgeting), [reforecasting](https://blog.plansmith.com/topic/reforecasting), [deposit trends](https://blog.plansmith.com/topic/deposit-trends) ### Subscribe Now! ### Posts by Tag - 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