The silent tax on your savings

Personal savings has risen significantly over the past couple years but the reward for saving is missing.

With the Federal Reserve keeping interest rates as low as possible, banks have had little incentive to pay interest on savings accounts, money market assets, CDs,  and so on.

The missed opportunity to generate income from savings accounts is the equivalent of  a silent tax administered by the Fed. The benefit of the Fed’s policy goes straight to the banks in the form of higher profits.

Syndicated columnist Scott Burns covered this topic well in his article in the Sunday Seattle Times titled The Great American Bank Robbery.