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Rainy Day Accounts Run Dry

posted 22 Feb 2011, 08:53 by Sam Mbale   [ updated 22 Feb 2011, 08:54 ]


New Bankrate poll reveals that only 52 percent of Americans have more money in emergency savings than in credit card debt

NEW YORKFeb. 22, 2011 /PRNewswire/ -- With unemployment rates still high, analysts believe emergency savings accounts are more important than ever. However, this month's study, released by Bankrate Inc., shows that little more than half of Americans have more money in savings than credit card debt. The poll, conducted by Princeton Survey Research Associates International, can be seen in its entirety here: http://www.bankrate.com/finance/consumer-index/feb-2011-financial-security-poll.aspx.

Among the findings:

  • Nearly one out of four Americans, or 23 percent, have greater credit card debt than emergency savings;
  • Among people over 65, 26 percent had neither debt nor savings, the most among age groups;
  • One out of three people from ages 30 to 49 had higher debt than savings, the highest proportion;
  • At 59 percent, adults under 30 were most likely to report their emergency fund was larger;
  • Only 15 percent of people are more comfortable with their savings now than compared to 12 months ago.

"Nothing helps you sleep better at night than knowing you have money tucked away for a rainy day," saidGreg McBride, CFA, senior financial analyst for Bankrate.com. "Yet only 52 percent of Americans have more in their rainy day funds than in credit card debt, and 19 percent have neither debt nor savings, which puts them one unplanned expense away from trouble."

Bankrate's Financial Security Index results are based on telephone interviews with a nationally representative sample of 1,018 adults, ages 18 and older. The interviews were conducted from Feb. 3 to Feb. 6, 2011, by Princeton Survey Research Associates International. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is +/- 3.6 percentage points.

About Bankrate, Inc.

The Bankrate network of companies includes Bankrate.comInterest.comMortgage-calc.com,Nationwide Card ServicesFee DisclosureInsureMe CreditCardGuide.com and Bankaholic. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO),America Online (NYSE: TWX), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers. Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009. Apax operates across the United StatesEurope and Asia and has more than 30 years of investing experience. For more information on Apax, visit: www.Apax.com.

Bankrate Senior Financial Analyst Greg McBride, CFA will be available to discuss the findings of the poll today. If you'd like to speak with him please let me know or for more information please contact:

Hilary Dommu

Corporate Communications Coordinator

Bankrate, Inc.

477 Madison Avenue, Suite 430

Ph. (917) 368-8635

Cell (561) 289-3556

Fx. (917) 368-8611

Hdommu@bankrate.com



SOURCE Bankrate, Inc.

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