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Earnings Credit Rate Programs for Property Management Companies

June 5, 2020

For more than 50 years, Earnings Credit Rate—or ECR—programs have been a go-to option for corporations seeking to lower their banking expenses.

By leveraging an ECR on non interest-bearing accounts, clients are able to offset various service fees associated with their other banking services, such as corporate cards, merchant services, and business loans. That credit can be applied against Treasury Management services that typically incur fees.

While ECR programs are attractive to Property Management Companies due to the large collected balances managed by their treasurers that would otherwise sit idle, many principals and CFOs may not understand what to look for when evaluating these programs for their business. To avoid leaving money on the table, it’s important to have a basic understanding of how they work and how they can be leveraged to maximum benefit.

ECR programs are typically structured in one of three ways: a high ECR matched with a high standard fee structure, a low ECR matched with a low standard fee structure, and a customized program that right-sizes the fee-to-credit ratio according to the client’s needs.

The right option for a holistic long-term strategy is different for everyone, which underscores the importance of a knowledgeable advisor who can offer a consultative analysis of your accounts and aid in your decision making.


  1. Analyze both gross and net profit margins monthly to assess efficiency.
  2. Make sure you know what types of accounts are getting earnings credit, and consolidate where appropriate to maximize benefits.
  3. Work with your Relationship Manager to understand how gross and net ECR are impacted in a volatile rate environment.
  4. Ask about whole or partial reimbursement programs—akin to “rollover minutes” on a cell phone plan.
  5. Consider using ECR to fund your company's innovation efforts.

To learn more about ECR programs and how you can take a consultative approach in incorporating them into your banking strategy, download our latest white paper at https://www.snb.com/property-management-banking.