Deposit Growth at US Banks

Citigroup reported strong earnings this morning as did JP Morgan and Wells Fargo last week.  All three banks also reported strong deposit growth as well.  Systemically, despite low interest rates, US banks have been growing deposits at an above average rate.  Y/Y, savings deposits grew by 11.5% as of the week of July 2.  On average, since 1985, savings deposits have grown by 8.4% Y/Y.  The higher than average growth in deposits since ’09 suggests that Americans are more comfortable saving via deposits rather than capital markets.