A report by Moebs $ervices found that checking account balances per account at credit unions reached historic highs.
The Moebs Checking Study found that consumers at banks reduced checking balances by 1.8 percent for the 12 months ending June 2018, while members at credit unions increasing their checking balances 3.0 percent. Thrift customers saw a 20.7 percent increase in checking account balances.
As of June 2018, checking account balances per account at banks were $4,019. For credit unions and thrifts, balances per account were $2,837 and $2,374, respectively.
Moebs noted that members are warehousing their money at credit unions, as credit unions are more likely to offer free checking relative to banks. Also, fees on credit union checking accounts are lower, especially overdraft fees.
Interesting. Does the bank call report have a section for number of accounts? I wonder where he is getting this information. I can understand where bank balances might be declining and large commercial accounts start to deploy their balances elsewhere in a rising rate environment, but I did not know you could aggregate out consumer bank balances per account this way.
ReplyDeleteKeith, thought you might find the following article about Marriott Employees FCU interesting. In NY Times yesterday: "Marriott Workers Struggle to Pay Bills, and Credit Union Fees". Here is the link https://www.nytimes.com/2018/10/11/business/marriott-credit-union-employee-strike.html
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