University Daily Kansan
Friday, September 21, 1979
9
Savings accounts offer little profit
By JENNIFER HOLT Staff Reporter
Staff Reporter
Students are becoming more reluctant to save money in a savings account these days simply because it doesn't pay, Lawrence said. A professor of economics, said yesterday.
"No one needs the weatherman to tell them which way the wind blows, nor does a student need a specialist to tell him that the amount of inflation is affecting savings," he said.
Radecki said inflation and taxes on illusory profits led to a net loss on savings, even though savers now are earning the highest interest rates ever.
Illusory profits are those that give an immediate appearance of profits, but actually offer no profit in the lone run.
The toll taken by inflation is readily calculated. Savers earn from 5.25 to 5.5 percent interest on their savings, but taxes take about 30 percent of that interest, depending on the saver's income and his tax bracket. Savers pay 3.8 percent in interest. But with inflation, the percent, the saved actually ends up losing 4.15 percent of his savings after taxes.
TWO LAWRENCE bank officials agreed that although interest on savings accounts
was not keeping up with inflation, the majority of students probably would be wise to continue using a passbook savings account.
Bonnie Wells, marketing officer at the First National Bank of Lawrence, 900 Massachusetts St., said, "Many students are using inflation as an excuse not to save. We have seen them get stuck on the money to fall back on. Although inflation is eating up the interest on savings accounts, at least with a passbook savings account there is no risk involved because it will be there and you'll at least get back what you deposited with some interest."
Jerry Mayne, comptertator at the Lawrence Bank and Trust Co. 647 Massachusetts St., said, "The growth of interest rates is falling behind the growth of income," he added, that most students, given the alternatives, stick with passbook savings accounts.
*PASSBOOK SAVINGS obviously are perishable but there is much effort in catching as much trying to cash in gold, diamonds or stamps, which have been receiving a lot of publicity
Ron Olsen, KU professor of economics.
said he thought students did not have any comparable savings alternatives to keep up with inflation. Some savings plans offer upgrades, such as a longer savings commitment, he said.
He said another form of saving, stocks and bonds, was too risky an investment because their value fluctuates daily.
"And when you need to turn them in for money, the value may be lowered and there you are," he said. "Passbook accounts definitely are safer."
WELLS SUGGESTED that students knew they would need a certain amount of money in the future invest in a certificate of deposit. Such certificates can be bought for $50,000 and are valid for 10 years. The longer the certificate is kept in the bank, the higher the interest, Wells said.
At First National, a 90-day certificate with $5 interest compounded with $.5 percent interest compounded with $.25 percent effective annual yield of $8.3 percent interest paid. Effective annual yield is interest paid.
An eight-year certificate requires a minimum deposit of $1,000 with an interest rate of 7.75 percent and an effective annual yield of 8.3 percent.
Wells also suggested that student check into money market certificates, a form of savings that is much less cried every week. Interest rates begin at 10 percent. A $3,000 minimum deposit is required.
THE SOUTHPLAZA CHIROPRACTIC CENTER WELCOME KU STUDENTS & FACULTY
For spinal related conditions feel free to contact
DR. WILLIAM A. MILLER
Member:
Kansas Chiropractic Association
Kansas Council on Neurology
Kansas Council on Orthopedics
American Acupuncture Society
Parker Chiropractic Research Foundation
2032 West 27th St.
Lawrence, KS
Phone: 842-4114
sua films
THE PRICE IS
WORTH THE WAIT!
Upcoming Weekend Movies— only $1.50 each
Malick's Days of Heaven
—Oct. 12 & 13
Brusati's
Brusati's Bread & Chocolate —Oct.19&20
Ashby's Harold & Maude—Oct. 26-27
Romero's Martin
—Oct. 26-27
Ritt's Norma Rae Nov.16-17
Visconti's The Innocent
—Nov. 30-Dec.1
Prize Winning Produce from the Garden of R. Gregory Walstrom 1128 Ohio will be for sale at this Saturday's City Market
Handbags - Jewelry
Accessories
Holiday Plaza 25th & Iowa
"THE SEDUCTION OF JOE TYNAN"
Granada
Sr. Consultant - Eng.
Ep. 7:20 & 9:40
Fax: 516-394-8712
www.granada.org
Cornwall, NY 10640
THE BEST FROM HOLLYWOOD!
COMMONWEALTH THEATRES
MOVIE MARQUEE
Varsity
"The EXORCIST"
Five 7:00 & 9:30
Sat Sun 2:00
PLUS: Fin & Sat & Midnight
THE PRODUCTIONS BILL
"THE PRODUCERS" (Adm. $2)
Hillcrest
1. "THE MAIN EVENT"
Sat 1:30 1:30
2. "VOICES"
Sat 1:45
3. "BREAKING AWAY"
Eve 7:45 & Midnight
Filming FIla & Midnight
4. "FILM FIla & Midnight"
PLUS: Fri & Sat at Midnight
"BUTTERFLIES"
1. "MISSION TO GLORY"
Cinema Twin
1. "MISSION TO GLORY"
Sun 1:45
2. "MORE AMERICAN GRAFFITI"
Eve 7:00 & 8:35
Sun 1:20
"GROOVE TUBE" *KENTUCKY*
FRIED MOVIE" & "MONSTY
PYTHON AND THE HOLY
GRAN."
Sunset
Box office opens 8:00
Showtime on clock
24 HOURS
Movie Information
TELEPHONE 841-6418
Lobbying groups to combine efforts
Mark McClanahan, recently appointed to coordinate efforts to organize CSH, will speak at the meeting along with Robin McCellan, ASK campus director
Students interested in working with student lobbying groups on campus, the Associated Students of Kansas or the Concerned Students for Higher Education, can attend an organizational meeting Sunday in Porter A of the Kansas University.
The KU delegation to ASK also will be selected.
She said she thought it also would be beneficial for both groups to work together in lobbying.
McClanahan was the assistant director of CSHE last year.
McClellan said yesterday that a joint meeting was being held because she hoped that students would consider membership in both lobbying groups.
University Women's League Starts Wed. Sept. 26 1:00 pm
This ad paid for out of the Student Activity Fee.
For Information call 864-3545
--sponsored by Gay Services of Kansas
Make it happen atKU!
ANNUAL FALL BEER BASH AT THE BREWERY
For All Juniors, Sophomores, Freshmen
-Friday Sept. 21st 3 pm-6 pm Free Beer and Class gifts for ALL Class Card holders.
Bring your class card, or $2.50 per person for all the free beer, fun & friends you can handle.
Buy your Class Card at the BOCO Office 107 B in the Union. . . or call for more information 864-4556.
Sponsored by BOCO
--sponsored by Gay Services of Kansas
Patio Sale Wild & Crazy MiS-pRInt T-Shirt Sale
“one of a kind” laughable, lovable, witty, crazy, or splashy designs. Some printed on two sides, a few MiS-pRIntEd on all four sides.
$2.59 each—2 for $5.00—3 for $6.00
Which option is best?
These forms must be filled out and returned by 5:00 P.M., September 28, 1979.
Jayhawk Bookstore
1420 Cresent
Attention Student Senate Funded Groups
Fall supplemental budget hearing forms are now available in the Student Senate Office, 3rd floor Kansas Union.
8-5 M-F,10-4 Every Sat
843-3826
Homecoming-Out Dance
Saturday, Sept. 22, 8 pm-1 am Kansas Union Ballroom
Admission $2.50
Guest DJ C.B., from the cabaret