High balance and rewards checking are just a few of the accounts that credit unions and banks are seeing increase in use.
A new deposit insurance fee calculation this year may push bank retail deposits even higher, one research firm predicted.
If history is any indication, the increase in rates on long-term certificates of deposit could mean higher inflation is around the corner.
Research firm Market Rates Insight found that in the fourth quarter of 2010, banking consumers kept placing their money in FDIC-insured deposits despite declining interest rates.
A decrease in the premiums on deposits at credit unions and banks in 2010 may have indicated a lesser amount of new capital was needed to fund loans.
That meeting between the rate of a liquid account and of a term deposit called the liquidation point may be one of the reasons more money tends to flow out of CDs into money market accounts.
More money tends to flow out of CDs into money market accounts if the liquidation point, that meeting between the rate of a liquid account and of a term deposit, is high.
It appears that when personal tax as a percentage of personal income goes down, deposit balances go up and vice versa, according to Market Rates Insight.
New research from Market Rates Insight showed that banks and credit unions may be offering consumers and members the reverse of what they are demanding with CDs.
Consumers used nearly 80% of their $29 billion in maturing CDs to pay down credit card balances in the first half of 2010.