Despite deposit yields remaining at near historic lows, it hasnot discouraged members from seeking the safe haven of insureddeposits.

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Member savings are up 4.2% year to date and 6.2% on an annual basis,according to CUNA Mutual Group's July Credit Union Trends Report,which tracked data through May. First quarter data revisionsincreased savings estimates by $3.9 billion.

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Members' choice of deposit accounts indicates yield is not a primaryconsideration, wrote Dave Colby, chief economist at CUNA Mutual, inthe report. Rather, there may be “a renewed sense of caution bymembers with respect to protecting their financial assets in thesetimes of economic and political uncertainty,” according toColby.

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Since May 2011, share draft balances were up 10.7% and regularshares grew 12.2%. Both of these accounts are paying less than0.28% annually, Colby said. Money market accounts with a currentnational average yield of 0.41% climbed 7.9% during the past yearand certificates of deposit declined 2.8%.

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The yield spread between a one-year CD and money market accounthas now declined just more than a half a percentage point, and nowis roughly one third of what it was at the beginning of therecession, Colby said.

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“While rates are at historic lows, credit unions will need toclosely monitor local competitive conditions as above market yieldswill trigger additional large deposit inflows,” Colbycautioned.

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