Banks offer different types of business account options to meet the different types of needs each business or individual has. At Drake Bank, we work to help clients figure out which account options make the most sense for their specific use and needs.
For businesses, this can be a bit trickier because of the additional services that business clients may be using to send and accept transactions, monitor for fraudulent transactions, and because of the generally higher transaction counts and account balances. This is why our team takes the time to evaluate the client’s account to really understand how they operate to see if a traditional checking account or an analyzed account offers more benefit for how their business operates and uses their accounts.
What is an Analyzed Business Checking Account?
Our Commercial Checking account is an analyzed business checking account that uses the average daily deposit balances to generate earnings credits, which can help offset monthly transaction and service fees. Essentially, by holding a larger balance in the account, you are able to help offset some of the costs that you may otherwise incur for transaction volumes and additional services that help your business process transactions efficiently and monitor for fraud.
What is an Account Analysis Statement?
An Account Analysis Statement is basically a report that outlines what’s going on in your business accounts over a set period of time—usually monthly. It breaks down your balances, activity, and any fees tied to how you’re using your account.
Think of it as a simple way to see which services you’re using—like ACH payments, mobile or remote deposits, and wire transfers—how often you’re using them, and what they cost. It also shows how the balance in your account can help offset some (or even all) of those fees.
How do I use the Account Analysis Statement?
If you are in an Analyzed Account, the Account Analysis Statement can be a powerful tool that provides transparency, clarity, and control over your business banking relationship. The statement details your account activity, Treasury Management services, associated fees, and balances maintained to offset those costs through the Earnings Credit. Here are some important aspects to understand when reviewing your Account Analysis Statement:
- Activity and Service Charge Summary
Provides a detailed breakdown of the pricing and volume for each Treasury Management Service during the statement period. - Summary of Average Collected vs. Available Balances
Shows the balances used to calculate your Earnings Credits. In simple terms, it reflects how much money you’re keeping in the account and how that helps you offset other charges on your account. - Earnings Credit Rate (ECR)
The Earnings Credit Rate is the percentage your business earns back into the account based on qualifying balances held in the account. Instead of earning interest, these credits are applied to offset eligible treasury management and account service fees.By using the Account Analysis statement as a tool, businesses can work to optimize or maintain the proper level of balances, to cover their additional service and account fees, and then shift excess balances to an interest-bearing account like an Investor Savings Money Market account to earn interest outside of the analyzed checking account. - Net Amount Due
The amount owed after Earnings Credit is applied to their monthly service fees. At the end of the billing cycle, the business would pay any difference owed in a hard charge. If the credits exceed the service charges, they are not carried over to the subsequent month.By understanding how Analyzed Accounts works and then utilizing the Analysis Account Statement as a tool, businesses can strategically manage their balances to minimize hard charges and optimize their overall banking costs. By conducting regular reviews, the Analysis Account Statement becomes more than a report—it becomes a roadmap for improving efficiency, maximizing value, and ensuring your banking services align with your business’s financial goals.
To learn more about whether this account structure would be best for your business, or to optimize your analyzed business checking account, contact our Treasury Management Officer.
