The trend: The stability of bank deposits (i.e., how likely they are to stay put) significantly changes over time based on a few key factors, per The New York Fed.

What determines where customers deposit their money? Deposits became especially volatile after changes in interest rates reached record levels in early 2022, just before the Federal Reserve began its aggressive cycle of rate hikes.

This means that since depositors are highly rate-sensitive, banks must offer competitive interest rates on savings accounts, checking accounts, and certificates of deposit (CDs) to attract and retain funds.