Work out spread between lending and deposit instantly with clear inputs, formula shown and shareable results.
A bank's real spread depends on its deposit mix, not just its term deposit rate. Low-cost current and savings balances pay a fraction of the term rate, so a high share of them lifts the spread materially.
Blended spread
Blended cost = term rate × (1 - CASA share) + low-cost rate × CASA share; spread = lending rate - blended cost
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
It permanently reduces funding cost, which is why banks compete hard for salary and operating accounts.
Not exactly. Margin is measured on earning assets and includes investments, not just the loan book.