In their continued efforts to pay down debt, credit unionmembers are still opting for highly liquid accounts.
|That's according to CUNA Mutual Group's June Credit Union Trends Report. There has been a strong preferencefor highly liquid accounts such as regular shares, money marketaccounts and share drafts. Since April 2010, more than 128% of thetotal savings increase was accounted for by liquid depositaccounts.
|Total savings climbed 0.7% in April, bringing the year-to-dategain up to 3.7%, the data showed. At $834 billion, savings were up$35 billion (4.4%) since April 2010. Still, certificates ofdeposit, which represented 25.6% of savings, fell 5.2% to $11.7billion through the same time period.
|“From a member perspective, households are rational and willcontinue to pay down higher-cost debt obligations versus buildsavings, which are losing ground to inflation,” according to DaveColby, chief economist at CUNA Mutual.
|The industry's current results continue to be well belowhistorical trends and below what might be expected given the highlevels of economic and employment uncertainty, Colby noted.
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