While savings at credit unions were up 2.2% year-to-date to $787 billion, compared to first quarter data over the past four years, growth may have reached its peak for the industry.
"Most would consider quarter-only growth of 2.2% as good, but when you consider over the past four years 72% of all annual deposit growth occurred in the first quarter, we believe the savings growth peak is behind us," said CUNA Mutual Group Chief Economist Dave Colby.
Despite historically low deposit yields with share drafts at 0.4%, regular shares at 0.5%, and money market accounts at 0.9%, members continued to favor these highly liquid accounts, according to CUNA Mutual's May Credit Union Trends Report, which tracked data through March. Since March 2009, 129% of savings gains were attributable to these accounts. Certificate of deposit balances were down 6.2% over the same period.
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