From deposit wars to relationship wins: The new era of deposit growth has begun

The deposit wars are over. After years of fighting for funds with aggressive rates and short-term promotions, credit unions are finally lowering deposit rates and moving past the frenzy. But as deposit rates cool, members are also looking for relief on loan rates, and credit unions are eager to restore healthy spreads that drive profitability.

This new environment changes the game. Winning deposits in 2026 won’t come from flashy offers—it will come from service excellence, deeper relationships, and intentional conversations that capture more of each member’s financial life.

At year-end 2024, the industry’s deposit mix looked like this:

In other words, more than 65% of deposits still sit in highly liquid, non-investment accounts—core deposits. These funds are not typically rate-shopped, which means they can be won and retained through relationship depth, not pricing alone.

Meanwhile, according to NCUA call reports, credit unions above $250 million in assets posted annualized deposit growth of only 6.7% in Q2 2025, a concerning sign. Also troubling is the drop in the loan to deposit ratio which currently stands at 80%—down from 83% in 2023. While on the surface this looks like a great trend, this decline is not due to deposits outpacing loan growth, but because loan growth itself has slowed significantly over the last two years.

This dual trend—softening loan demand and sluggish deposit growth—means credit unions must get serious about deposit strategy to build core deposits in 2026. The answer will not be found in promotional CD rates but in frontline conversations, intentional coaching, and new avenues for deposit capture.

Credit unions that are seeing the most success in growing core deposits have made their deposit conversations more proactive and intentional. Instead of simply raising awareness— “We have great savings rates”—their frontline teams are trained to dig deeper, collect information, and engage members in meaningful discussions about where their savings are held and how the credit union can better serve them. Conversations like this:

These small but powerful pivots shift the conversation from information sharing to relationship capturing.

The same applies when members initiate transactions. For example, when funding a CD or withdrawing a large balance, staff should be trained to ask:

These kinds of conversations are producing real results. One branch employee shared how a member came in to close a CD worth just over $200,000 and withdraw the funds. Rather than simply processing the request, she asked what his plans were. The member explained he had found a better rate elsewhere. With that information, she secured approval to match the rate—but she didn’t stop there. She followed up by asking if he had additional savings at other institutions and whether he’d consider consolidating them with the credit union. That single question led the member to move an additional $1.7 million in deposits—spread across savings, money market, and CDs—into the credit union.

Beyond traditional savings balances, credit unions must look for non-traditional opportunities such as 401k rollovers. Members changing jobs often have stranded retirement accounts that can be rolled into IRAs. These deposits often reach into six figures, making them an excellent target for both liquidity and investment services referrals.

Dormant accounts are another overlooked opportunity. A simple outreach call can re-engage members and uncover forgotten balances. Pair this with referral strategies—asking members who just deposited funds if they know others looking for deposit solutions—and credit unions can tap into entirely new networks of growth.

One of the greatest opportunities credit unions must seize heading into 2026 is in the business banking space. Too often, business relationships are treated as a second thought. Often, credit unions have no effective strategy for capturing business relationships at the branch level. While they may have business advisors, they rarely coordinate their efforts with other departments, stifling the potential.

Business owners maintain significant balances in checking, savings, and money market accounts—often at other institutions. Businesses are generally not all that concerned about the rates they are earning on these accounts, only that they are liquid and easily accessible.

Credit unions can capture these deposits by:

Business deposits are often stickier and larger than consumer accounts, making them a critical growth lever for 2026.

While deposit growth is the most pressing challenge today, balanced growth remains the long-term goal. A credit union cannot afford to chase whichever line item is currently under pressure—deposits today, loans tomorrow, non-interest income the next year.

The path forward is consistent:

The future is uncertain, but one thing is predictable: credit unions with a balanced, proactive sales culture will be prepared for whatever challenge comes next.