MADISON, Wis. — Perhaps as a buffer during what is expected to be a prolonged period of economic uncertainty, members are spending much less and stocking away more in their savings accounts.

According to CUNA Mutual Group's September Credit Union Trends Report, which tracked industry data up to July, lower yielding money market accounts and share drafts contributed almost 57% of all savings growth over the past year. Additionally, some members may be opting to stay very liquid so they can take advantage of the deep price discounting this economic downturn will bring, said Dave Colby, chief economist with CUNA Mutual, who compiled the report.

“[Certificates of deposit] were the primary growth driver of savings gains in 2007, but this portfolio segment has come under extreme rate pressure from other institutions desperately buying liquidity,” Colby said.

Savings and assets have fallen in each of the past two months, but this is likely due to the draw down of fiscal stimulus payments received in May, Colby noted.

“[We] see that the overriding trend is stronger savings and asset growth as members are spending much less during this period of economic and employment uncertainty.”