Even as credit unions continue to manage deposit yields, for many consumers, some concerns are more pressing, such as reducing debt.
From a household balance sheet and cash flow perspective, debt reduction provides a significantly higher return, according to the November Credit Union Trends Report from CUNA Mutual Group. However, from a credit union perspective, deposit yields continue to be managed lower.
"The lack of loan demand implies new deposit inflows must go into investments. The combination of assessments on deposits and short-term investment yields below the average cost of funds translates into negative spreads on most new money," wrote Dave Colby, chief economist at CUNA Mutual.
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