Something extra on deposits
Seventy percent of America's capital comes from household savings, yet small savers are discriminated against.
Federal interest rate ceilings limit the payout on their passbook accounts to 5% in commercial banks and 5.25% in savings institutions, which is less than half the current rate of inflationand much less than a higher-roller gets for investing $ 1,000 or more in a money market mutual fund. The small saver's squeeze is summed up in a Citibank anti-ceiling advertisement: "Deposit $500 with us today and we'll give you back $475 next year."
Last week savers got a powerful lift, and so did the...