The primary intangible asset that is identified as part of a banking transaction. This bank asset provides a stable source of funding and hence the core deposit intangible (CDI) has value as core deposits, typically including interest and non-interest- bearing checking accounts, savings accounts and money market accounts.

In a business combination, such assets provide a below-market source of funds to an acquirer. The intangible assets represented by the deposits have limited lives as reflected in the fact that deposits close out over time for multiple reasons including competition, relocations, and decease of accountholders.

However, other fixed-term deposits such as retail certificates of deposit, for amounts less than $100,000, may also feature intangible asset value, depending on certain circumstances. Deposits with higher proclivity to relocation, and those where interest and maintenance costs exceed the cost of alternative funding sources, are not classified as core deposits.