According to the Labor Department, there are 24.6 million households headed by people aged 65+ and older.
Most of these folks spent their lives working, raising families, and saving a little from their paychecks. They are risk adverse and dependent on the income from Certificates of Deposits and money market funds.
As of January, the average interest rate paid on these relatively safe vehicles was 0.24%, the lowest on record dating back to 1959.
Americans have $3 trillion in money market funds and $5 trillion in savings accounts. Compared to 2007, the loss of interest income amounts to $350 billion a year, according to Crane Data.
One-year CD rates have plunged during the last 3 years from 3.63% to 0.53%, and Bankrate.com estimates this translates into a loss of $41 billion a year for savers.
Most of these folks spent their lives working, raising families, and saving a little from their paychecks. They are risk adverse and dependent on the income from Certificates of Deposits and money market funds.
As of January, the average interest rate paid on these relatively safe vehicles was 0.24%, the lowest on record dating back to 1959.
Americans have $3 trillion in money market funds and $5 trillion in savings accounts. Compared to 2007, the loss of interest income amounts to $350 billion a year, according to Crane Data.
One-year CD rates have plunged during the last 3 years from 3.63% to 0.53%, and Bankrate.com estimates this translates into a loss of $41 billion a year for savers.
Source: Anchor Capital
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