S&L deposits plunged $4.6 billion in April
Federally insured savings-and-loan associations reported their worst loss of deposits on record in April. The Federal Home Loan Bank Board said the associations recorded a $4.6 billion depletion of savings accounts, more than twice the March shrinkage of $2.1 billion.
Earlier, mutual savings banks, which account for about a third of the assets of the S&L industry, reported April losses of $2 billion in deposits.
After December, April is traditionally the weakest month for S&L deposits, as depositors take out money to pay income taxes and Easter bills. Apart from seasonal considerations, depositors who seek higher interest rates are buying shares of money-market mutual funds or Treasury bills with money withdrawn from S&Ls.