Savings growth continues to shatter records for credit unions with much of the activity coming from regular shares not money market accounts and certificates of deposit.
The $67 billion gain in savings in the first seven months of 2009 is $21 billion or 47% above full year 2008 results, according to CUNA Mutual Group's September Credit Union Trends Report. Thirty-eight percent of the year to date increase is attributable to regular shares (0.65% yield), 32% from MMAs (0.95% yield) and 12% from CDs (2.03% average yield on 1-year CDs).
Overall, 78% of the savings gain this year is attributable to low-cost liquid deposit accounts. This helps explain the drop in cost-of-funds from 2.44% at year-end to 1.88% at mid-year, according to CUNA Mutual Chief Economist Dave Colby.
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