Letters: Passbook accounts

Published: Wednesday, Jan. 9 2013 12:00 a.m. MST

Summary

Call me nostalgic, but I miss the days when a person could depend upon a consistent and safe 3-5 percent return on money in a passbook savings account. We haven't seen those times since the later 1960s when price inflation began to grip the economy. Savers began to look to other venues where they might be able to stay even with, or get ahead of, inflation.

Today, it's nearly impossible to save without falling behind. More often than not, savers feel compelled to become investors, something for which they have neither the temperament nor the time. Consequently, a large number of them have experienced significant losses. The alternative is to return to passbook savings earning interest of less than 1 percent.

What will it take to create an economy where an average person can earn a simple, dependable and safe return on savings that will enable him or her to stay above water?

Steven Yorgason

Sandy

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KDave

Moab, UT

The Fed Reserve sets interest rates. If a bank can borrow from the Reserve at less than 1% why would they pay more on savings accounts. If interest rates were allowed to rise to 3 to 4% that would triple the interest on our 16 (soon to be 17) More..

9:03 a.m. Jan. 9, 2013
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SEY

Sandy, UT

Twin Lights:

Two things: first, my credit union is currently paying 0.10% on "dividendes," which is their version of a passbook account. Checkbook savings can be as high as 0.55% The latest CPI is 1.8%. Please comment on how More..

9:03 a.m. Jan. 9, 2013
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DougS

Oakley, UT

Once upon a time, the banks needed depositors so they would have capital to loan, even offering free toasters etc., to new depositors.

That is no longer the case. They can borrow from the Federal Reserve at very low rates. By regulation, More..

10:09 a.m. Jan. 9, 2013
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