San Diego households saving more following pandemic
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Amid the pandemic, San Diego households have deposited and reserved more cash with credit unions, according to a report released Thursday by the California Credit Union League.
The League, the state’s trade association for credit unions, reported that the deposits of approximately 1.2 million San Diego consumers hit a record $ 20.7 billion from June 2019 to June 2021, up from $ 30 Percent equals.
Robert Eyler, contract economist for the California Credit Union League, said the surge, which is among the highest in recent years, was likely due to travel restrictions put in place during the coronavirus pandemic.
Many workers too have concerns about job stability and are unsure about the direction of the economy, Eyler said, which could add to the growing trend in savings.
According to the report, checking account shares hit a record $ 4.7 billion, up 16 percent, and regular savings account shares totaled $ 4.8 billion, up 35 percent. Money market accounts hit a record $ 7 billion, up 17 percent in two years.
Recent price inflation in goods and services could erode some of these households’ savings, Eyler added.
“If inflation stays relatively high through 2022 and deposit rates start responding to that surge, household savings could shift to higher-yielding accounts,” he said.
While San Diegans deposited more with credit unions, they borrowed less, the report shows. Total loans to credit unions in San Diego declined to $ 12.3 billion during the biennium, a 14 percent decrease from loans of $ 14.3 billion in 2020.
First-time mortgages were down 10 percent, home loans and credit lines were down 26 percent, credit card loans were down 12 percent, and used car loans were down 17 percent, the report shows.
The only significant category of credit that grew during the pandemic was corporate credit, up 11 percent. This also included real estate loans for landlords.
Credit unions are not-for-profit organizations run by their members, some of whom volunteer on the boards of credit unions. The profits made by the credit unions are returned to members in the form of lower fees and lending rates, as well as higher savings rates, according to industry groups.
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