Weak savings growth coupled with fast membership expansion over the last year reduced the savings per member growth rate to 0.6%, the lowest since August 2000.
That's according to CUNA Mutual Group's August Credit Union Trends Report, which tracked data through June. Credit union savings balances fell 0.5% that month, lowering the year-over-year savings growth rate to 3.5%.
Deposit interest rates appeared to have bottomed out in the second quarter and are starting to move up ever so slowly, Steve Rick, CUNA Mutual chief economist said.
Meanwhile, an anticipated increase in interest rates next year is poised to impact credit union deposits.
“With the Federal Reserve expected to raise interest rates in 2015, many credit unions are forecasting possible deposit runoff next year as some interest-rate-sensitive members look for higher returns elsewhere,” Rick said.
Still, credit unions should outperform most banks when it comes to deposit retention because of the nature of their deposits: More retail and core deposits and less commercial deposits, he added.
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