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Dropping Interest Rates Hurt Savers

April 07, 2008 01:01 PM
by findingDulcinea Staff
Fewer Americans are able to save money and account interest rates are dropping. Banks are pushing high-yield savings to counter the problem.

30-Second Summary

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As mortgage rates drop in response to the credit crisis, savings accounts interest rates are also declining. The New York Post says customers with $7,500 in a regular savings account will spend more on out-of-network ATM fees than they will earn in savings.

Consumers have little incentive to save and are using the little cash they have to pay off debts. Banks are suffering as a result, and many are promoting high-yield saving accounts to encourage consumers to invest.

Headline Links: Savings accounts empty as interest rates go down, debt goes up

Background: Causes of current financial crisis

Opinion & Analysis: 'Which Online High-Yield Savings Account is Best?'

Reference Link: Investing wisely

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