As we discussed in last month Monetary Watch , the recent acceleration in uncovered money substitutes is no longer just about depositors liquidating time and other term deposits in favor of instantly redeemable demand and savings deposits (in Austrian speak, bank depositors liquidating credit claims, raising cash, then depositing and holding that cash in money substitute form with those same banks).
The high net interest margins at Wells Fargo have, in large part, been attributed to its large low cost average core deposits (which include noninterest-bearing deposits, interest-bearing checking, savings certificates, market rate and other savings, and certain foreign deposits).
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But in China, where most savings are in the form of bank deposits and where earnings on savings are a significant portion of total household earnings, lowering deposit rates tends to increase the savings rate.
At this level an individual's thoughts turn to insurance, burglar alarms and savings deposits.
Should a bank be on the verge of collapse, authorities can seize savings deposits and other healthy parts and transfer these assets to a third party.
Subscribers throughout the country will be able to make money transfers and savings deposits, pay bills, handle payrolls, and engage in mobile commerce activities without ever setting foot in a bank.
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In particular, you can set up automatic bill payments and savings account deposits.
M2 includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds.
For example, a "single account" is one account category that includes deposits in checking, savings accounts, money market deposit accounts and time deposits such as certificates of deposit (CDs).
The government is encouraging individuals to provide for their own pensions, prompting a shift from low-return bank deposits towards higher-return equities and savings plans.
But they will also encourage people to shift savings from bank deposits and bonds into the stockmarket, and even to borrow money in order to buy shares.
This affects savings accounts and other deposits because interest rates are unlikely to rise until the U.S. economy strengthens.
There are some banks that have seen the increase in the savings rate and higher deposits give them a pretty good capital base, but they're still constrained by some regulatory restraints.
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Good news for the economy might even translate into good news for savings accounts and other deposits, which have seen interest rates driven down to near zero by weak loan demand and Federal Reserve intervention.
But by 2010, the Goldman researchers predict, stocks and mutual funds will climb to 39% of household savings and insurance to 34%-while bank deposits drop to 18%.
The 537 Sparkassen (savings banks), mainly owned by municipalities, and the 12 Landesbanken, regional banks owned by state governments and savings-banks associations, account for 39% of domestic retail and corporate deposits and 35% of bank lending.
Savings banks could take in deposits from the public and make personal and home loans.
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But Macquarie Group analyst Steve Harris points out that Italy's banking system is generally well funded by deposits, and Peace is encouraged by plans to recapitalize struggling Spanish savings banks.
Not only that, but it was unclear what exactly the target should be, since money could be defined in different ways: narrowly, as cash and demand deposits held with commercial banks, or broadly, including savings deposits with other financial institutions.
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