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Americans' feelings on financial security

 

Interest rates are at record lows, and the stock market is hitting new highs. But if you're still not tempted to invest in the stock market, you have plenty of company. Bankrate.com found that more than 3 in 4 Americans -- 76 percent -- say they are not more inclined to invest in the stock market with interest rates on savings accounts and CDs at record lows. This is the same reading we got this time last year, and even the 22 percent that say they are more inclined to invest in the stock market, is up negligibly from 18 percent last year.

Bankrate.com also announced the latest Financial Security Index results. The Financial Security Index is a monthly poll of consumers asking how they feel relative to one year ago on five core tenets of financial security -- job security, savings, debt, net worth and overall financial situation.

For the second month in a row, and just the 4th time since the poll began in December 2010, Americans indicate that their financial security is slightly improved relative to one year ago. This month's reading of 100.4 was down slightly from 101.5 last month, but even a report of disappointing job growth wasn't enough to shake Americans' upbeat feelings of financial security relative to one year ago. Any figure above 100 reflects feelings of improved financial security compared to the year ago period.

Consumers feel they have progressed over the past year in each component except one -- savings. Those who feel less comfortable with their current savings outnumber those who feel more comfortable by a ratio of greater than 2 to 1. The results also tend to correlate highly with income, with lower income households possessing the most downbeat levels of security while higher income households are either the most likely to be upbeat or the least likely to be negative.

For more information on this month's Financial Security Index, just visit Bankrate.com.

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