Savings accounts in Chicago--Gary--Kenosha Dollars except as noted Account availability and fee averages 2001 2002 Change Percent offering 100.0 100.0 .0 Simple passbook account (1) Percent offering 18.3 37.5 19.2 * Monthly fee (low balance) 2.43 3.80 1.37 Minimum balance to avoid fee 153.01 192.64 39.63 Minimum balance to open 106.43 131.94 25.51 No-fee passbook account Percent offering 10.7 12.9 2.2 Minimum balance to open ...
Savings accounts in California Dollars except as noted Account availability and fee averages 2001 2002 Change Percent offering 98.0 96.4 -1.6 Simple passbook account (1) Percent offering 22.9 15.8 -7.1 Monthly fee (low balance) 2.32 2.36 .04 Minimum balance to avoid fee 263.93 325.65 61.72 Minimum balance to open 169.50 133.54 -35.96 No-fee passbook account Percent offering 3.5 3.6 .1 Minimum balance to open ...
Among the two savings account types, passbook accounts
had two significant changes: an increase in the low-balance fee at banks and an increase in the minimum balance to avoid a fee at savings associations.
Research from MoneyExpert.com shows the number of passbook accounts
paying less than 1% has shot up to 344 out of a total of 628 accounts.
One important example: Interest on bank passbook accounts
was stuck at 5 1/4 percent - by government fiat - while "real world" interest rates were approaching 20 percent; that meant people were actually losing money by keeping it in the bank.
SAVERS who insist on traditional passbook accounts
could be missing out on many of the best deals on offer.
Mutually-owned building societies that still offer face-to-face services and old style passbook accounts
are cashing in on the protest.
But many of the investors fueling this boom aren't sophisticated shareholders with strong convictions; they are former savers hoping to beat the 2 percent annual interest rate banks offer on passbook accounts
. Some observers fear that when the market encounters a correction--and inevitably it will--this new money could flee as fast as it came in.
are opened on average with more than pounds 400, and 80% of account holders have a passbook while 20% have the cash card permitted once they turn 11.
It found that the average return paid by the top five easy access passbook accounts
was 4.16 per cent, compared with an average of 5.29 per cent on the top five instant access accounts.
MOST savers with passbook accounts
are missing out on a small fortune in lost interest every year.