Commercial Interest-bearing (CIB) accounts provide the business client with the ability to earn interest on idle funds. Treasury Management assists the client in determining which type of account is the best fit - Repurchase, Repurchase Sweep, Money Market Sweep, Negotiated SuperNow, or Negotiated SuperNow Sweep.
Money Market Sweep
This investment product allows for-profit organizations to earn a competitive rate of interest, without the transfer or check limitations associated with most Money Market accounts. Interest rates are tied to account balances, where higher balances earn higher rates. Funds above a pre-determined target balance are swept into an interest-bearing account. Funds are swept back to the non-interest bearing account to cover checks and other withdrawals only as needed.
Premium Rate NOW Account
This account is typically utilized by non-profit entities, and includes charitable organizations, city and county governments, educational institutions, and so on. This is an interest-bearing transaction account, and can also be set up as a sweep with a target balance, or a single account. Interest rates are tiered, and higher balances earn higher rates.
Repurchase Account
This account works like an interest-bearing checking account, however it provides clients with collateral for their deposit dollars. Clients often use this account when they are required to maintain collateral protection for their deposits in excess of the FDIC limit. Interest rates are tied to account balances, where higher balances earn higher rates. The Repurchase account can be set up as a sweep account with a target balance or as a single account.
Repurchase accounts are a sale of marketable securities from the bank to the investor, where the bank agrees to buy back the securities the next day at the same price plus interest. Since the bank collateralizes Repurchase accounts, they take on characteristics of a collateralized overnight loan from the investor to the bank.
When you discuss CIB accounts, do the following:
Discuss Features and Benefits
Features
- Interest-bearing transaction account
- Can be set up various ways including as a sweep with a tired balance or a single account
- Interest is earned daily and paid monthly to the account
- Interest rates are tiered based upon balances
Benefits
- Maximizes the earning power of the funds by sweeping excess funds from a checking account
- The status of the automatic investment is available on a daily basis from Online Banking
- Higher balances earn higher rates
- Low cost, high-yield account
Identify Opportunities
Always be on the lookout for businesses who may benefit from CIB accounts. Below are examples of prospective clients.
- Real estate title companies
- Business that want an interest bearing account, but need collateral for their deposit dollars
- Companies required to maintain a collateral protection for their deposits in excess of the FDIC limit
- Non-profit organizations
Discover Client Needs
Before you recommend a product or service to a client, prospect, or friend, it only makes sense to recommend things they might actually need or like. This is why it's important to ask questions that help us gain insight about an individual's banking preferences.
Sales Associates
To identify the Treasury Management product for each prospect based on his or her needs, you need to ask qualifying questions and listen to verbal clues. Below are examples of qualifying questions and clues:
- Are you wanting to earn interest on your checking account for your non-profit organization?
- Mr. Jones, I know you run a non-profit agency. Have you thought about opening up a checking account?
- Would you like to maximize the use of your capital?
Some common statements you might hear from clients are:
- "I'd like to be able to earn interest on money. Do you offer accounts for non-profit agencies?"
- "I'd like to open up a checking account for the non-profit agency that I run."
- "I'd like to be able to earn interest on my checking account. Is that possible even if I own a non-profit agency?"
Non-sales Associates (Take it to 10)
If you do not feel comfortable with CIB accounts, but are working towards your Take it to 10 goals, do not focus on a specific product. Instead, ask if the prospect is interested in the services provided at CCB. To do this you might say:
I work at Capital City Bank and we offer several products and services designed to meet your banking needs, including CIB accounts. Would you be interested in learning more about them with an associate of mine?
Recommend Products/Services
When you have identified a need or learned about a prospect's banking preferences, you are ready to make recommendations that align with his or her goals.
Sales Associates
Below are examples of what you might say when recommending CIB accounts after having used the qualifying questions.
I recommend that you open a Commercial Interest bearing account to fulfill your business needs. This account is available through our Treasury Management department. This type of account will allow you to earn interest while being able to conduct transactions as normal. Does this sound like something you are interested in?
Non-sales Associates (Take It to 10)
If you are simply trying to make a referral to CCB, then you are recommending the bank, and even a specific banker. Below is an example of how you make this recommendation.
I recommend Capital City Bank, not only because I work there, but also because it is a great place to bank. We are a strong, stable community bank with a variety of personal and business products and services. I would be happy to connect you with a friendly banker to help you with our CIB accounts.
Handle Objections
It is highly likely that once you make a product or service recommendation, you will receive objections. Before responding, keep the following points in mind:
- Make sure you understand the question or objection
- Be empathetic
- Address the question or objection even if you can't change the product or service
- Check with the prospect to make sure he or she accepts your response or explanation
To respond to objections, use Feel, Felt, Found to structure your responses. Below are examples of objections and suggested ways of responding.Sales Associates
Client Objection: "I think I just want a regular checking account."
Feel: I understand it is possible to open an Everyday Checking account.
Felt: Many clients have thought the same way.
Found: With opening a commercial interest bearing account you will be able to gain interest on your funds. Also, with this type of account, you do not have a maximum amount of items that are able to clear the account like the Everyday Checking. May I have a Treasury Management representative contact you and see which account would best fit your financial needs?
Non-sales Associates
Client Objection: "I'm not sure what type of account I want yet."
Feel: I understand you may not be ready yet.
Felt: Most people like to compare a few places or get recommendations before doing something.
Found: Most people I talk to find that Capital City Bank has all the bells and whistles of the big banks with a small community feel. You can always speak to one of our bankers who can tell you more about our CIB accounts with no strings attached. Would you like me to have one of them give you a call?
Ask for the Business
If you did not receive an objection or have already come to an acceptable resolution with the client or prospect, you are ready to ask for the business. Asking for the business is how we move the sale forward. Below are some examples of what you might say to ask for the business.
Sales Associates
- May I open the ________ account for you now?
- Do you want to sign up for the ___________ account now?
Non-sales Associates
In the case of an associate who is making a referral for Take it to 10, you are trying to get the prospect to agree to meet with a banker about a need. Below are some examples of what you might say to do that.
- May I get your contact information so I can have my friend, ___________, call you?
- Can I get your name and number so I can have a Treasury Management representative call you about opening your _________ account?
- May I have a Treasury Management representative call you to help you find the best product for you?
Make a Referral
If you are a sales associate or non-sales associate who cannot open a CIB account, but have identified someone who is interested in this service, remember to refer him or her to an associate who can help.
Making referrals at Capital City Bank is as easy as A B C! Below is an example of the ABC method to making referrals.Acknowledge or Ask questions about a need.What do you typically look for in a financial institution?Bridge with a transition statement highlighting how Capital City Bank can meet that need.I work at Capital City Bank and we have great products to help meet your financial needs.Connect to a Capital City Banker that can help.Our Treasury Management representatives can help you find the best product/service for your needs. Would you like for me to have a banker contact you at a time that works for you?Process the Sale
To sign up for this service, you will need to sign an agreement. I will have a Treasury Management representative forward you this agreement to you. Is there anything else I can help you with today?
Sales are processed in generally one of two ways:
- The associate who can sell the product follows established policies and procedures to close the sale.
- An associate connects the person to a qualified banker using a Synapsys referral for the CIB account to be completed by the qualified associate.
Additional Information on Sale Processing
See the Synapsys referral instructions.
