As 2009 winds down, money market accounts will probably be this year's top driver for increased savings activity at credit unions.
Over the past year, the 22.1% gain in money market accounts contributed almost 38% of all savings growth, followed by a 30% contribution from regular shares which were up 11.8% through October, the latest period tracked, according to CUNA Mutual Group's December Credit Union Trends Report.
Certificates of deposits, which accounted for 31% of total CU deposits, were up just 4.1% over the past year, while members seeking safety for their retirement assets generated 15.5% annual growth in individual retirement account deposits.
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The continuing savings surge has translated into annual asset growth of 9.6% with total assets topping $907 billion, according to CUNA Mutual Chief Economist Dave Colby. NCUA call report data showed 1,625 CUs reported asset declines over the past year. Sixteen of these CUs had declines in excess of $100 million.
"In most cases, it appears deposit yields were adjusted lower to discourage deposit rollovers and new inflows. These actions reduced assets and help protect capital ratios," Colby said.
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