Since the start of the recession in January 2008, the share ofliquid deposits in credit unions increased 11.2 percentage pointsand now stands at its highest level ever at 67.5%.

Share drafts, regular shares and money market accounts make upthose deposits, according to CUNA Mutual Group's May Credit UnionTrends Report, which tracked data through March.

While the record level helps current cost-of-funds, it alsoimplies significant challenges when rates move higher, saidDave Colby, CUNA Mutual chief economist, in the report. Still,rates aren't expected to move up until at least 2014, he added.

Despite almost continuous declines in deposit yieldsyear-over-year savings growth moved up to 6.2%, the highest level since April2010, the data showed.

“Historically, members increased savings prior to the start of arecession and we hope the recent trend is not a harbinger of yetanother economic cycle,” Colby said. “Given the extremely low yieldenvironment, we are concerned and will closely monitor near-termtrends.”

Colby said this is especially true since regular shares (0.288%national average yield) are up 10.2% year-over year.

The five payroll Fridays in March boosted month-only savingsgrowth to 2.5% with a 6.9% month-only increase in share draftbalances, according to the data.