Thanks to a fifth payroll on Friday in December, credit union money market accounts contributed 41% to all deposit gains for 2009 followed by regular shares and share drafts.
According to the CUNA Mutual Group's February Credit Union Trends Report, CUs finished 2009 with total savings growth of 10.6% as members continued to seek safe havens for their assets in spite of low deposit yields. Regular shares accounted for 31% of growth and share drafts came in at 16%. Individual retirement accounts added almost 13% to the total, while certificates of deposit subtracted from growth.
"Helping support above-trend growth was consumer dissatisfaction with big banking and their growing preference for locally owned and locally controlled institutions," according to CUNA Mutual Chief Economist Dave Colby. "Growth rates could have been stronger had some CUs not discouraged deposit growth [through] less competitive rates and limited advertising to stabilize falling capital ratios."
For the near term, savings growth should remain solid but may recede as members continue to watch economic and employment conditions, Colby pointed out.