Dear Bank: Here's How You Can Slash Deposit Costs and Delight Customers (Yes, Really!)

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Julia Stefani
June 7, 2024

For years, the holy grail for banks has been attracting and retaining low-cost deposits. Traditional methods like offering higher interest rates on savings accounts can be expensive, especially in rising rate environments. But what if there was a way to keep your customers happy and decrease your funding costs? One answer lies in a surprising place: investment products.

Max Their Yield, Min Your Deposit Cost?!

Low risk and liquid investment products such as money market funds and Treasury bills are now fast becoming the norm for businesses and individuals to have access to safety and yield on their funds. A bank is well positioned as a distribution channel for those investment products to their customers. 

The kicker is that providing access to investment products enables banks to decrease the yield paid on deposit bank accounts. This strategy is not only commonly used by Fintechs, such as Mercury and Brex, but also by top tier banks such as JP Morgan, Citi, BofA,...

Embedded Investing As The Winning Solution

By offering embedded investment options within your existing platform, you can create a win-win situation. Here's how:

  • Reduced Deposit Costs: By giving customers a chance to grow their money beyond basic savings accounts, you reduce the pressure to offer high interest rates on deposits.
  • More Fee Revenue: By offering some investing solutions to your customers you can you can charge additional in exchange for that service. 
  • Increased Customer Satisfaction: Embedded investing can empower your customers. You can become a one-stop shop for all their financial needs, fostering trust and loyalty. Imagine offering simple, user-friendly investment options that seamlessly integrate with existing accounts. Convenience and financial growth? That's a recipe for happy customers.
  • Increased Customer Retention: One of the common problems for smaller banks is to grow with their customers. By providing some investment offerings you are able to meet more of their needs and thus build on the relationships you have invested time to establish

But Isn’t It Complex To Provide Access to Investment Product?

While there are many benefits of enabling access to investment products you might be wondering how hard it might be for you to provide this product. Thanks to technology and Fintech companies like Treasure, it is now more than ever possible for you to use Embedded Investment solutions that you can plug into your offering without having to commit a lot of resources to develop it.


Attracting deposits via offering a high yield can be very costly, especially in the current interest rate environment. By embracing embedded investment solutions, banks can create a more resilient strategy that reduces funding costs while keeping customers happy, and also driving revenue. We think it's a win for the bank, a win for the customer, and a win for the overall financial health of the community.

If you are interested in optimizing your cost of deposit while delighting your customers, get in touch with Treasure to see how we can easily help you embed investment products into your platform.

The information provided is for informational purposes only and should not be construed as investment, financial, legal, or tax advice. This material should not be considered an offer or recommendation to buy or sell a security, or a recommendation of any specific investment or strategy. You should consult your own financial, legal, and tax advisors before engaging in any transaction. While information and sources are believed to be accurate, Treasure does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information. For more information about Treasure, please visit

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