Savings in the News: Overdraft Fees and New Money Mindset

September 23, 2009
By Kevin Cafferty

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Two great news articles appeared recently about Americans and saving:

Philly.com:

Americans learning their lessons on overdraft fees

In a recent survey by economic researcher Moebs Services Inc. some 45 percent of banks, savings institutions and credit unions acknowledged that their overdraft fee income was greater than net income.

This year alone, Moebs said, banks are looking at cashing in a record $38.5 billion in overdraft fees.

The Associated Press:

Meltdown gives consumers a new money mindset

While personal income is down slightly since the recession officially began in late 2007, the personal savings rate is rising. In 2007 the savings rate stood at 1.7 percent of after-tax income. That climbed to 2.7 percent in 2008, and in July — the most recent data available — hit 4.2 percent. As people fear losing their jobs, they will save more: Economists expect the savings rate to top 6 percent in coming months if unemployment — which was 9.7 percent in August — continues to rise.