NEW YORK, Feb. 20 — New Yorkers believe that they should be able to save at least 5% of their incomes, plan to save for future security or retirement, but frequently have to spend their savings for emergencies, a sampling conducted for Union Dime Savings Bank here reveals.
The bank sought to learn more about the thrift habits and attitudes toward savings of New York people.
The research study, a series of lengthy interviews with a selected group of 200 Union Dime savers and 250 of their neighbors, was conducted by National Analysts, Inc., Philadelphia.
New Yorkers want to save, and the majority, 58%, of those interviewed believe that those who fail to do so lack sufficient income or have large bills to meet, the survey showed.
On the other hand, 35% of the group think that people fail to save because they have no concern for their futures and "live up" their incomes. "Lack of will power" is ascribed by 17% of the group as the reason for non-saving, while 16% say non-savers "live beyond their means," it adds.
Half of those interviewed in the Union Dime survey think a family of four living in New York can save 5% of its total income. 30% think such a family can save 10% of its income. Of those who have had experience in saving at Union Dime more believe that 10% is possible than do their neighbors.
Two thirds of those queried believe that future security or retirement is the main purpose for which people save their money. This is the opinion of 73% of the Union Dime depositors and 61% of their neighbors.
Second in importance as savings goals, named by 47% of the respondents, are emergencies or the proverbial "rainy day." Other purposes, ranked according to the percentages of the group mentioning them, are: education 19%; major appliances 16%; and living necessities 14%.
Despite the prime importance ascribed to the goal of saving for future security or retirement, two thirds of the respondents say savings actually are spent for emergencies, "anything above and beyond regular predictable living expenses." 13% state that savings are spent for vacation trips.
Bank savings accounts are used by the overwhelming majority, 85% of those who actually are saving, 40% of those who have bank savings accounts have systematic deposit programs, 36% of the savers purchase government bonds, 24% buy corporate stocks.
Banking is by far the best known of the various ways or means of saving money. It was mentioned by 97% of the respondents, while stocks were mentioned by 40%, bonds by 32% and Government bonds by 28%.
The New Yorkers say that their selection of a savings method is influenced by the amount of interest paid on deposits. Interest rates were described as "very important" by 52% of the Union Dime sample group, as "fairly important" by 28%.
Union Dime, a mutual savings bank founded in 1859, has its main office at Avenue of the Americas and 40th Street and a branch at Madison Avenue and 39th Street. One of the largest savings banks in the country, Union Dime serves more than 150,000 depositors with total savings of nearly $500 million.
