Weak savings growth coupled with fast membership expansion overthe 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 UnionTrends Report, which tracked data through June. Credit unionsavings balances fell 0.5% that month, lowering theyear-over-year savings growth rate to 3.5%.
|Deposit interest rates appeared to have bottomed out in thesecond quarter and are starting to move up ever so slowly, SteveRick, CUNA Mutual chief economist said.
|Meanwhile, an anticipated increase in interest rates next yearis poised to impact credit union deposits.
|“With the Federal Reserve expected to raise interest rates in 2015, manycredit unions are forecasting possible deposit runoff next year assome interest-rate-sensitive members look for higher returnselsewhere,” Rick said.
|Still, credit unions should outperform most banks when it comesto deposit retention because of the nature of their deposits: Moreretail and core deposits and less commercial deposits, headded.
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