Credit Unions Increasing Membership and Deposits

Credit unions added 725,531 new members and $39 billion in new deposits during the 12 months ending March 2011.

SAN ANSELMO, Calif. (June 13, 2011) – A new analysis from Market Rates Insight (MRI, http://www.marketratesinsight.com/ ) reveals that credit unions have increased their membership base as well as their deposits volume during the 12 months ending March 2011.

Total membership increased from 90.2 million to 91.0 million – an increase of 725,531 new members at an average operating cost of $149 per new-member acquisition. The average membership per credit union increased from 12,035 to 12,475. The incremental increase in the average membership per credit union occurred despite a decrease in the total number of credit unions from 7,498 to 7,292 - a decrease of 206 institutions. The absolute increase in the average number of members per credit union was 439. The average same-store increase, which excludes mergers and acquisitions, in the number of members was 97 new members per credit union.

Total deposits (savings) at credit unions increased from $773 billion to $812 billion in the 12 months ending in March 2011 - an increase of $39 billion. The average deposits per member increased from $8,568 to $8,923 over the same time period - an increase of $355 per member. The greatest increases in deposits occurred in regular shares accounts (savings), which increased by $23 billion, followed by Money Market account up $15 billion and share drafts (checking) up $10 billion. The greatest decreased occurred in share certificates (CDs), which decreased by $12 during the 12 months ending March 2011.

“The credit union segment of the banking industry is very dynamic,” said Dan Geller, Ph.D. Executive Vice President at Market Rates Insight, “the increases in membership and in balance volume are an indication of broad appeal to and acceptance by the marketplace.”