IRAs Quietly Climb to 10% of CU Deposits
While money market accounts were the star of the savings show for most of 2009, individual retirement account balances made a steady rise at credit unions.
IRA balances are up 12% over the past year with an average yield of 1.84%, according to CUNA Mutual Group's March Credit Union Trends Report, which tracked data through January. At $75 billion, this portfolio segment has quietly climbed to almost 10% of all CU deposits, noted CUNA Mutual Chief Economist Dave Colby. They still have quite a way to go to catch money market deposits, which accounted for 51% of all savings growth in 2009.
Meanwhile, share drafts were down $2.4 billion as certificates of deposits also experienced a drop. Over the past year, CD balances were down 2.9% as rates remained under 2%.
At $768 billion, total savings for the CUs is 8.3% above the January 2009 level, according to the trends report.