WASHINGTON — The nation's credit unions are experiencing the slowest growth on record in member savings this year, even as consumers make heavier use of credit cards and other borrowing.

The Credit Union National Association issued new data last week showing savings rose 1.8 percent from January through August, compared with a 2.3 percent rate at the same point in 2005, which was then the most sluggish pace recorded. Savings balances at the 8,800 U.S. credit unions fell 0.2 percent in August, to $606.8 billion.

There has also been an internal shift in the composition of savings as credit union members move money into certificates of deposit. Yields on certificates of deposit have risen this year as the Federal Reserve has raised its target for short-term interest rates to 5.25 percent.

The credit union report is in line with other data showing the U.S. savings rate has fallen dramatically. According to the Commerce Department, the savings rate, after-tax income minus expenses, largely has been in negative territory since late spring of 2005.

Bill Hampel, CUNA chief economist, says the record housing market of the past several years is a big reason for the falloff in savings. As prices and equity rose, people felt wealthier, had less reason to save and more equity to borrow against. With housing in the midst of a major correction, that should turn. "Now that manna from heaven (housing) is evaporating ... it will induce households to save," he says.

"We're at the bottom of the weak saving behavior, and in the next few months, the household sector will begin saving again."

Credit union activity make up about 12 percent of savings at depository institutions.