PMA Funding provides banks the opportunity to tailor a funding strategy that best fits their business model. One common approach is known as the barbell strategy. Financial institutions raise deposits on the short-term, in either fixed term CD’s or PMA SDA accounts, and then also complement those deposits with longer fixed term CD’s with direct public entity funds or DTC eligible deposits.  

From a banks' standpoint, this method combines both low-risk and high-risk liabilities in order to diversify overall risk to the funding portfolio. Through this managed approach, the financial institution will have the ability to work with a PMA Bank Funding advisor in order to actively manage short-term deposits day to day or month to month, until maturity, and then also balance long term deposits when needed.  The financial institution can take advantage of lower funding costs on the short end and manage potential rate increases by locking in longer term deposits at a lower rate.