Ninety cents of every bank deposit dollar now comes from retail consumers, according to research firm Market Rates Insight.
Forget the debate over whether or not a credit union should keep offering free checking accounts, there are signs credit unions may eventually have to decide whether or not to charge their members fees for holding deposits.
Consumer uncertainty may have helped bank deposits grow to nearly $10 trillion.
Dan Geller at Market Rates Insight predicts retail banks will start charging interest on deposits.
While some credit unions and banks in more than a dozen states are experiencing an increase in their average deposit rates, they may need to make some adjustments.
For credit unions and banks, having $6 trillion parked in some of their accounts should be a good thing, right? Not necessarily.
Credit unions may have noticed that the yield differentiation between short- and mid-term certificates of deposit at banks shrank over the past year.
The 60-month CD held its interest rate better than any other deposit product at banks, according to research firm Market Rates Insight.
Credit unions and banks located in cities such as New York, Philadelphia, Chicago, Los Angeles and San Francisco may have an advantage when it comes to deposit balances.
With deposit rates for products such as money market accounts expected to remain low this year, consumers may continue to react based on the economy's uncertainty.