How does your savings account stack up?

[Lynn Smith]

“Household saving” is defined as the difference between a household’s disposable income (wages , self-employed revenue, income from property, etc.) and its expenditures on goods and services. The “household savings rate” is calculated by dividing household savings by household disposable income.

The country with the highest household savings rate in 2010????  Italy, at 20.2%, according to the OECD – Organization for Economic Cooperation and Development.  France and Japan were at 14.8%, the United States at 7.3%.

According to the St. Louis Federal Reserve Bank, our savings rates peaked in the early 1970s at around 14.6%.  The 1990s saw a surge in available credit, coupled with intensive marketing and ad campaigns, and our savings rate dropped to 3.5% by January of 2000.  Due to the recession, that rate was down to1.3% by January 2008.

A recent article in the New Haven Register States the “average” savings account balance for a Connecticut household is at about $6,914 – a little over $1100 more that the US average of $5,753.

Since Start Community Bank opened, we have seen great interest – no pun intended – in our Fast Start savings account .  Our current 1.67% Annual Percentage Yield is about 16 times better that the average .10% APY that most savings accounts pay in the area.  Our rate starts at $20 – not $20,000!!!  And our 13 month CD with a $500 minimum balance pays the same 1.67% APY – the best rate in town!  Now, terms and conditions do apply on both accounts, so make sure you visit us at startbank.com for all the details.