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Deposit Growth At Credit Unions And Impact To Savers

Monday, August 13, 2012 - 5:17 AM
The increased popularity of credit unions haven't helped deposit rates. This SNL article describes how much credit union deposits have increased. As can be seen in the following excerpt, if institutions have too many deposits, they invest a lot of those deposits in Treasuries. With the very low Treasury yields, this can't be good for their deposit rates.
State Employees has lowered its deposit rate "numerous times over the last few years" as lending remains constrained and deposit growth continues to increase, although at a lesser pace. SECU tries to lend 85% of deposits, but is currently lending 60% and invests the rest in U.S. Treasuries

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Wednesday, August 15, 2012 - 10:48 AM
Doing the jump over to credit unions seems to have backfired on us.  Now they have so many deposits, they are dropping their rates as fast as the banks.  Where to go??  I guess we don't give up looking when we have funds available.
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,150