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November 2011 Financial Security Index » Savings

Q:

How do you feel about the amount of money you have in savings compared to 12 months ago?

A whopping 46 percent of Americans are less comfortable with their savings this year versus last. In May, 35 percent were less comfortable.
More than half of those approaching retirement (ages 50 to 64) are less comfortable with their savings today, while just 7 percent are more comfortable.
Roughly half of those who have not completed college feel less comfortable with their savings, while about 10 percent feel more comfortable.
Jason Whitby

"The Federal Reserve's push to drive down interest rates in order to prop up the economy has penalized savers receiving interest income from CDs, cash (and) most bonds."

Those lucky, lucky few -- 11 percent to be exact -- mostly the young, educated and employed, feel more comfortable with their savings today versus those unfortunate unemployed, underemployed or retired who are feeling no better or even worse. And why should they? The economy is struggling. Unemployment is high. Wage increases are practically unheard of. Home prices are beaten down, leaving many underwater and drowning in mortgage debt. A violently swinging stock market has produced little, if any, returns so far this year. And finally, the Federal Reserve's push to drive down interest rates in order to prop up the economy has penalized savers receiving interest income from CDs, cash (and) most bonds since they are now hovering at historic yields. No wonder almost half of respondents feel less comfortable with their savings today versus a year ago. No surprise here.

- Jason Whitby, MBA, CFA, CFP, senior financial adviser with Investor Solutions in Miami, Fla.

« Back to the Financial Security Index poll.

 

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Savings Overnight Averages
Product Yield +/- Last week
MMA
0.49% 0.49%
$10K MMA
0.48% 0.50%
MMA jumbo
0.62% 0.62%
Interest checking
0.51% 0.51%
Compare rates:
Don Taylorsavings
You've matured, but maybe not those savings bonds you received as a kid.
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