Retail Deposits—A Place to Call Home

Sharp market downturns usually trigger a flight to safety, and the current crisis is no exception. In certain jurisdictions, such as the US, the shift benefits primarily money market funds; in Canada, it is mainly retail deposits. The last recession saw rapid inflows to premium savings accounts (PSAs), rising from $94 billion to $183 billion through 2008 and 2009, a 95% increase in just two years.