Word: passbook
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
Banks welcome such shifts since it helps them to save on the interest that they have to pay to depositors, but it does not mean any new cash in their vaults. Moreover, many customers are getting money for an All Savers Certificate by taking it out of passbook accounts, which now pay no more than 5.5% interest; that actually increases the cost of borrowing money for the financial institution. Concludes Stuart Root, president of the Bowery Savings Bank of New York City, third largest in the nation: "All Savers are not a panacea for our industry, but then again, nobody...
Talman employees have a reason to be nice. They would be in deep trouble without the fierce loyalty of such customers to their old-fashioned passbooks. In American banks and in savings and loan institutions, an incredible total of more than $341 billion is sitting in accounts that pay a maximum of 5.5% interest. Those funds could currently be earning about 18% in a money-market account, 14.9% in a six-month savings certificate or 13% in a tax-exempt municipal bond fund. If the 5,000 savings banks and S and Ls in the U.S. suddenly had to start...
Government regulation limits the interest that can be paid on passbook accounts to 5.25% at commercial banks or 5.5% at savings and loan associations or mutual savings banks. Those ceilings are supposed to be eliminated by 1985, but plans to get rid of them sooner have foundered because of opposition from banks and S and Ls. Raising the interest-rate limit by just 1% would cost the troubled savings institutions an estimated $1.8 billion annually. This week federal regulators will discuss a proposal to double the interest rates on passbook accounts to 10.5% for banks...
...amount of money in passbook accounts has dropped by more than $50 billion since the beginning of the year; yet the mystery is why the total has not declined even more sharply and why anyone still keeps a substantial amount of money in a savings account. An avalanche of publicity tells about better-paying ways to save, and the banks themselves aggressively promote six-and 30-month certificates that offer three times more interest than passbooks. The new All Savers Certificates that will start being sold next month will initially pay 12.61% tax-free...
Today's high rates would not have been welcomed by anyone a few years ago, when the legal ceiling on interest the average saver could earn was the meager 5.5% paid on a passbook account at a savings and loan association or a mutual savings bank. The level is established by the Government. But financiers have been very creative in developing new high-yield deposits. Starting next month, for example, the new All Savers Certificate that was approved by Congress last summer will pay 12.61% tax-free for up to $1,000 in interest for an individual...