(Length: 14 pages)

Executive Summary (This is a document excerpt)

Consumers are sitting on a ton of uninvested cash — opening the door for firms looking to grow deposit balances by offering superior rates on savings, certificates of deposit (CDs), and money market accounts. Forrester segmented online consumers by the amount of liquid assets they hold and by their rate sensitivity. Thirty percent of online consumers have more than $10,000 in liquid assets. Of this group, one in five is willing to move money between firms for a rate less than a one-percentage-point increase over what they get today. Based on the amount of cash they hold in checking accounts, we estimate that nearly $28 billion is available for higher-interest-bearing accounts.