For the first time ever, the average savings balance at credit unions moved past the $9,000 mark.
That’s according to the April issue of CUNA Mutual Group’s Credit Union Trends Report, which tracked data through February.
Members have a preference for liquid deposit accounts, wrote Dave Colby, chief economist at CUNA Mutual, in the report. Share drafts (0.26% yield) were up 10.9% since February 2011, regular shares (0.27% yield) were up 9.3%, and money market accounts (0.42% yield) increased 7.9%. Certificates of deposit were down 3.5% with one-year yields falling to 0.966%.
The 2011 savings gain was 5.2%, an improvement from 2010but annual growth through February slipped to 5.0%, the data showed.
Colby said he expects short-term rates to remain low through 2014 based on statements and actions from the Federal Reserve Board.
“This will give CUs solid spreads provided they can grow loans in portfolio, but this will be a difficult challenge,” Colby said.