With a recent 2% drop in certificates of deposit at credit unions, the savings tools are now $44 billion below their March 2009 peak.
"From a member perspective, the 0.80% national average rate paid on a one-year CD isn't worth tying up the money," said Dave Colby, chief economist at CUNA Mutual Group.
According to CUNA Mutual Group's June Credit Union Trends Report, 114% of the year-over-year change in deposits went into share drafts, regular shares and money market accounts as of April, the latest month tracked.
Member savings fell $5.2 billion in April as liquid deposit account balances were drawn down once again from the five payroll Fridays in January, the data showed. This figure will be reversed when May results become available, Colby noted.
Still, year-to-date, member savings deposits were up $30 billion, or 3.2%, and annual growth came in at 3.7%.
"In aggregate, credit unions have more than adequate liquidity and continue to manage their cost of funds lower, given the low investment yields at the margin," Colby said.
NCUA data showed the Q1 2014 annualized cost of funds was 53 basis points, down from 59 for 2013 and 61 in Q1 2013, according to the trends report.
Colby, who retires July 11 after 37 years of service at CUNA Mutual, took some time to reflect on the forecast for the next chapter of his life.
"Looking forward, I see my retirement. I have worked with credit unions and CUNA Mutual for more than 37 years and it's been great," Colby said. "Throughout my career, my goal was always to have a positive impact. I hope that in your minds I did. Who knows what the next chapter of my life will bring, but it will include my credit union."
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