A Corporate deposit is an interest bearing deposit bank product offered to corporate banking customers by banks and accredited financial institutions.Corporate deposit target customers can include large commercial companies, public institutions, government agencies and large non profits. It contrasts to retail deposits which are held by consumers and business deposits that are held by SMEs. Corporate banking clientsmay use this type of product as a cash management solution when managing the optimal mix of liquidity and returns of surplus funds as it may provide an investment stream.
More recently corporate deposit versus retail deposit offerings will likely be affected by the Basel iii liquidity rules,with the regulations giving a preference to ‘sticky money’, which is deposits that are more likely to be held by the banks on an ongoing basis such as retail term deposits, as they tend to roll them over when the deposits mature. However large corporate can have large cash reserves and which is another funding source for banks.