Even as products such as money market accounts continue to surge, credit unions may see low deposit yields well into and after 2011.
Share drafts, MMAs, and regular shares accounted for a 122% increase in savings growth, according to CUNA Mutual Group's September Credit Union Trends Report, which tracked data through July. Certificates of deposit were down 3.4% year-to-date and 6.0% or $14.1 billion over the past year.
"Looking forward, we see credit unions aggressively managing asset growth to maintain capital ratios. This implies continued low deposit yields for at least another 12 to 18 months," noted David Colby, CUNA Mutual chief economist.
Savings were up 5.7% since July 2009, the CU industry data showed. Although the five payroll Fridays in July biased savings results upward, as evidenced by the 4.8% month-only gain in share drafts, the overall growth trend for savings and assets is not robust, according to Colby.