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Insight Center Community Bank

Industry knowledge to help you grow your business

Deposit Inflows Present Need for Retention Focus

The flow of funds into banks and credit unions over the past several months is occurring at an unprecedented rate. Causes for this dramatic inflow include the ‘flight to quality’ occurring due to the stock market collapse, the temporary increase of FDIC insurance to $250,000, and the recent shift in consumer behavior away from spending and toward a renewed sense of saving. What is unique about this growth in deposits is that it is occurring when interest rates are at historic lows.