MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS As of December 31 ($ in millions)  2010 2009 2008 2007 2006 Demand $21,413 19,411 15,287 14,404 14,331 Interest checking  18,560 19,935 14,222 15,254 15,993 Savings  20,903 17,898 16,063 15,635 13,181 Money market  5,035 4,431 4,689 6,521 6,584 Foreign office  3,721 2,454 2,144 2,572 1,353 Transaction deposits  69,632 64,129 52,405 54,386 51,442 Other time  7,728 12,466 14,350 11,440 10,987 Core deposits  77,360 76,595 66,755 65,826 62,429 Certificates - $100,000 and over  4,287 7,700 11,851 6,738 6,628 Other 1 10 7 2,881 323 Total deposits  $81,648 84,305 78,613 75,445 69,380 As of December 31 ($ in millions)  2010 2009 2008 2007 2006 Demand $19,669 16,862 14,017 13,261 13,741 Interest checking  18,218 15,070 14,191 14,820 16,650 Savings  19,612 16,875 16,192 14,836 12,189 Money market  4,808 4,320 6,127 6,308 6,366 Foreign office  3,355 2,108 2,153 1,762 732 Transaction deposits  65,662 55,235 52,680 50,987 49,678 Other time  10,526 14,103 11,135 10,778 10,500 Core deposits  76,188 69,338 63,815 61,765 60,178 Certificates - $100,000 and over  6,083 10,367 9,531 6,466 5,795 Other 6 157 2,067 1,393 2,979 Total average deposits  $82,277 79,862 75,413 69,624 68,952 TABLE 23: AVERAGE DEPOSITS  TABLE 22: DEPOSITS checking due primarily to rate management actions on single  product public funds accounts in the second half of 2010. Deposit balances represent an important source of funding and  revenue growth opportunity. The Bancorp continues to focus on  core deposit growth in its retail and commercial franchises by  improving customer satisfaction, building complete relationships  and offering competitive rates. At December 31, 2010, core  deposits represented 70% of the Bancorp’s asset funding base  compared to 68% at December 31, 2009.  Deposits  Included in core deposits are foreign office deposits, which  are Eurodollar sweep accounts for the Bancorp’s commercial  customers. These accounts bear interest at rates slightly higher  than money market accounts, but the Bancorp does not have to  pay FDIC insurance nor pledge collateral. The Bancorp uses these  deposits, as well as certificates of deposit $100,000 and over, as a  method to fund earning asset growth. Certificates $100,000 and  over at December 31, 2010 decreased $3.4 billion compared to  December 31, 2009 as customers opted to maintain their balances  in liquid accounts due to historically low interest rates.  Core deposits increased $765 million, or one percent,  compared to 2009 due primarily to increases of $3.0 billion in  savings and $2.0 billion in demand deposits which was primarily  the result of excess customer liquidity. In addition, foreign office  deposits increased $1.3 billion due to an increase in commercial  customer deposits due to excess customer liquidity, and those  customers opting to sweep additional funds into these accounts  for the higher interest rates. These increases were partially offset  by the continued run-off of higher priced certificates included in  other time deposits, which declined $4.7 billion, or 38%,  compared to December 31, 2009, as well as a decline in interest  On an average basis, core deposits increased $6.9 billion, or  10%, due to increases in interest checking of $3.1 billion, demand  deposits of $2.8 billion, savings deposits of $2.7 billion and  foreign office deposits of $1.2 billion, partially offset by a decrease  in other time deposits of $3.6 billion. This activity was the result  of the migration of higher priced certificates included in other  time deposits into transaction accounts, as well as the impact of  historically low rates and excess customer liquidity.  46 Fifth Third Bancorp