Earnings Credits and Fees

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Customers Bank’s Business Analysis Checking disclosure describes an earnings allowance that offsets eligible activity charges, not interest earned. Excess allowance cannot carry into the next month.

Fictional inputs: $36,500 average daily collected balance, zero reserve deduction, 1% annual allowance rate, 30 days in a 365-day year, and $45 eligible charges. Assume no other fees.

The allowance is $36,500 × 1% × 30 ÷ 365 = $30. Remaining fees are $45 minus $30 = $15.

With a $73,000 average collected balance and all other inputs unchanged, the allowance becomes $60. $45 offsets fees; the remaining fee is zero. The $15 excess is neither a cash interest payment nor next month’s credit.

Doubling the balance therefore saves only another $15 here, not $30. Under these assumptions, $54,750 generates the $45 needed to offset all eligible charges.

This is not a quoted rate or deposit recommendation. Confirm the collected-balance calculation, reserve deduction, current rate and eligible charges. Consider liquidity needs and alternative uses before keeping business cash solely for fee offsets.