CDs

The Tennessee company is pleased with loan growth. It has also been able to reduce its dependence on brokered deposits as it brings in new customers following its purchase of Capital Bank.

Many bankers say the agency needs to rethink its definition of brokered deposits and how it sets interest rate caps.

The agency said it would not apply the data collection requirement for existing accounts that automatically renew or roll over, such as certificates of deposit or commercial credit cards.

Competition for deposits is heating up as summer approaches, and banks are responding in all sorts of ways — from launching digital-only platforms to raising CD rates to reviving debit rewards. But rising interest rates could weaken demand for loans, especially mortgages.

With rate hikes aplenty expected this year, Wells Fargo and Bank of America are said to be subdividing key markets to target deposit pricing in the future and minimize costs. These are among several innovative steps large banks are taking to prepare for more competition for deposits.