Wednesday, February 29, 2012

Study: Bank deposits grew in 2011

Consumers are still stockpiling money in their bank accounts, a new analysis from a banking research firm found.

In the last three months of 2011, consumers added $250 billion to their domestic bank accounts - nearly $3 billion per day - according to the report from Market Rates Insight, a California company that analyzes bank pricing.

For the year, domestic deposits in FDIC-insured lenders grew by $882 billion. The increase is due in part to consumers moving money from term accounts such as CDs to their more liquid checking and savings accounts, the firm found.

CD balances fell by $157 billion last year, for instance, while checking, savings and money market balances grew by more than $1 trillion.

"More consumers are risk averse and prefer the safety and security of FDIC-insured deposits," Dan Geller, Market Rates Insight's executive vice president, said.


Anonymous said...

When you stand naked before The Man on judgement day (and judgement day is coming) ain't nobody gonna be asking you about your wallet.