Word: passbooks
(lookup in dictionary)
(lookup stats)
Dates: during 1970-1979
Sort By: most recent first
(reverse)
...institutions have stopped making loans because it is impossible for them to earn any profit. Traditional lenders are also running short of cash because people are transferring funds from savings accounts to booming money market funds, which invest money in high-yielding securities and pay twice as much as passbook accounts. Perhaps three-quarters of the savings and loan associations in Chicago have stopped making mortgage deals...
...depressed stock prices? Frustrated savers and unhappy investors are turning to the same solution. In record amounts, Americans are buying into the relatively new money market mutual funds. They offer minimum risk and yields of 10% to 13%, double or more the low rates set by the Government on passbook savings accounts...
...market for short-term borrowings to cover operating expenses. The move out of savings is badly hurting the thrift institutions. They face a tremendous competitive disadvantage and a sharp outflow of funds because the Federal Reserve's Regulation Q prohibits them from paying more than 5½% on passbook savings. A bill before the Senate would slowly phase out the interest rate ceilings by 1990. Meanwhile, says Robert Garver, president of Boston's Charlestown Savings Bank: "The money market funds are killing...
With inflation running at 13.1% for the first seven months of this year, the saver has discovered that he is throwing his money away if he puts it in a passbook account paying the federal maximum of 5¼% to 5 ½%. The real interest rate is usually less than that because it is clobbered by federal, state and city income taxes. Since interest is considered "unearned" income, the federal tax alone can go as high as 70% for wealthy people...
...small saver need not keep his money in a passbook account, but he has fewer choices than large investors. If he is willing to tie up his money for a long time, he can buy four-year bank certificates linked to the Treasury note rate, now paying over 8%. But depositors with $10,000 can earn 10% from six-month money market certificates, and people with $100,000 can pick up 11% from three-month bank certificates of deposit...