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BRIEFLY / FINANCIAL SERVICES

U.S. Savers Forgoing $30 Billion in Interest

October 18, 2000|Bloomberg News

U.S. consumers, with more than $1 trillion in low-yielding savings accounts, could earn at least $30 billion more in interest by moving money into alternatives such as certificates of deposit or savings bonds, a new survey says. The Consumer Federation of America and Providian Financial Corp. released a study showing U.S. consumers aren't aware of more attractive and equally safe savings options. The report says consumers who moved savings into CDs, Series EE savings bonds or higher-rate savings accounts would receive at least 3 percentage points more in interest than regular savings accounts, which pay an average 2.1% interest rate. By doing this, consumers would earn at least $30 billion more in annual interest, according to a study of Federal Reserve data.

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