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Banking Services

This page provides an overview of banking requirements for local governments in Washington State, along with sample RFPs/agreements and links to best practices and list of authorized depositaries.


Cities and counties are required to bank with a qualified public depositary (RCW 39.58.080). In code cities, the bank is designated by the council (RCW 35A.40.030). In other classes of cities and counties, the statutes allow the treasurer to select the bank (RCW 35.38.010 and 36.29.020).

Cities and counties may pay for their banking services by direct charges for each service, by compensating balances (funds the bank holds on which it pays no interest), or a combination of the two.

Most special purpose districts do not have their own treasurers and rely instead on the county treasurer to manage their financial and banking services. However, some special purpose districts use their own treasurer and procure their own banking services.

Relevant Statutes

  • RCW 39.58.080 - Deposit of public funds in public depositary required -- Deposits in institutions located outside the state
  • RCW 35A.40.030 - Fiscal -- Depositaries
  • RCW 35.38.010 - Designation of depositaries
  • RCW 36.29.020 - Custodian of moneys -- Investment of funds not required for immediate expenditures -- Service fee
  • RCW 39.58.010 (8) and (15) - Definitions of "financial institution" and "public depositary"

Examples of RFPs

To make certain that they are getting the services at a good price, local agencies should periodically do a request for proposals (RFP). Below are a few selected examples.



Special Purpose Districts

Joint RFPs

Examples of Banking Agreements

Below are a couple examples of banking contracts. Some of the RFPs above also include sample banking contracts.

Recommended Resources

Last Modified: April 04, 2022