European Stars and Stripes (Newspaper) - June 23, 1991, Darmstadt, Hesse                                Page 16 a the stars and stripes v sunday june 23, 1991 savings snapshot Andrews finance a a merchants Federal Center $1,000 Bank . . Investment Gar Ger service Federal . Ger Pentagon Federal . Ger Keesler global Federal Federal . . Us Italy seem More attractive by Chet Currier the associated press like a lame old mule in a pack of thoroughbred racehorses the Humble passbook savings account is making an improbable comeback these Days in the investment Derby. \. Its not that passbook accounts which have spent most of the last 20 years in Well deserved Disfavour have suddenly discovered a new source of vitality. Rather falling interest rates have slowed the Progress of Many racier savings alternatives so drastically that the plodding passbook has almost caught up by default. According to data published last month by the Bank rate Monitor newsletter Money Market deposits in the United states at Banks and savings institutions were paying an average interest rate of 5.22 percent. The average yield on Money Market Mutual funds As tracked by Donoghue a Money letter stood at 5.53 percent. The lowly passbook savings account coming up fast on Sharail is paying in the neighbourhood of 5.01 percent to 5.09 percent a a a a a a a a a a a a a a a in Europe passbook savings accounts Are generally 0.5 percentage Points to 1.5 percentage Points behind certificates of Deposit but More customers Are putting Money into them anyway a at least Tern Pora Rily banking officials say. Terry Weir vice president of Market ing for service Federal credit Union in Kaiserslautern Germany said passbook savings accounts have become More attractive As cd rates have tumbled from 8 percent to 6 percent this year. A sure it As had an effect a Weir said. A Money is moving out of  / even Christmas club accounts Are gaining by default Weir said. Those rates Are set at the beginning of the year and cannot change so they have suddenly become somewhat attractive when compared with falling cds., service cd Crall a Christmas club account will pay 6 percent this year for cd ample which is higher than what the same institutions one year certificates of Deposit deliver right now based on a $1,000 investment. Despite such numbers financial advisers in Europe say passbook savings accounts Are not. The Best place to Park much Money because their rates wont certificates of Deposit 6 months certificates of Deposit 1 year passbook savings 6% 6.05% 5.45% 5.55% 4.75% 5% 5% rates shown Are generally Lor balances Between $50 and $1,000. Rates vary above $1,000. Source. Stars amp stripes Survey june 17 -21 Rise when interest rates Overall Start to Quot creep Back up with economic recovery. Passbook savings fates typically Are kept Low by Banks generally never rising above 5.5 to 5.75 percent they say. And there a a Host of other investments to pick from that will deliver greater returns Over time. A people choose passbook savings accounts normally because they Haven to looked at anything else a said John Ger Rish a certified financial planner in Rem Seck Germany who caters to military clients. A a it a a matter of sophistication and education of the  Charles Fronstin a financial planner in Frankfurt agreed. The typical passbook savings account Holder a is someone who a very conservative with a limited not offered 5.78% not offered 6.06% 5.85% 6.705% 15 month. 5.85% 6.38% 5% 5.25% 5.25% 5.09% a amps Susan Harris knowledge of investing a he said. One positive feature that passbook savings accounts do hold is that they Are liquid investments meaning that customers can put Money in and take it out at will. With certificates of Deposit an account Holder has to leave the Money untouched for a specified period usually six months or one year or pay a penalty for Early withdrawal. Fronstin and Gerrish however still done to think it makes sense to tie up Large sums of Money in passbook savings. A in the Long run you can find other investments that Are More attractive in terms of growth a Gerrish said. A passbook savings is pretty Well accepted to be the very lowest rate of return you can get on anything.�?�. Contributing to this Story staff writers Dave Tarrant and Randy Mcclain in Darmstadt. Germany _ who a very conservative with a limited Randy Mcclain in Darmstadt.  say a Loans Worth pursuing despite opposition from Lender by Ellen James Martin Points for the buy of their Homes Arlin t2 n if Cam n n 1/1 i i la n a it null no satellite Eye for seafarers Charles Trimble displays some of his company a navigational equipment which incorporates satellite technology for global positioning. The technology which was developed by the . Military uses satellites to determine a vessels position anywhere in the world with pinpoint accuracy. By Ellen James Martin the Baltimore Sun Are you a Veteran eligible to buy a Home with a veterans administration mortgage then done to let any Lender or real estate agent discourage you from pursuing the option. A go Tor it push ahead pursue it a advises Douglas Bregman co author of the paperback successful real estate negotiations. A the a loan could be an excellent Choice for you when you buy a Home a he adds. With a a loan you can borrow most or All of the value of the property. You Are allowed to finance some closing costs and you will be shielded from having to pay the Lender Many costs associated with the mortgage a including any a a Point beyond the original mortgage origination fee. A Point equals 1 percent of the mortgage principal what is More the Overall Cap on How much you can borrow with a a backed a loan has in recent months been hoisted to $184,000, up from $144,000. That Means a qualified buyer can buy a More expensive Home without a big Down payment. A a a loan is probably the most attractive Way for an individual to Purchase a Horne a observes Charles Al linger a Branc manager for Mac mortgage the National lending company. A Given All the pluses for the Borrower does it come As a Surprise that some veterans Are steered away from taking out a a loan rather than a conventional or Cha mortgage it . Some real estate agents dislike a mortgages because they impose terms on the seller that Sellers like As much As cod liver Oil. Remember that virtually All real estate agents arc legally bound to represent the interests of the seller not the buyer a no matter How much time the agent has spent ferrying the buyer about looking at prop cry. A a \ a a / a a a and How Many Sellers will gladly assume the responsibility for paying the discount Points for the buy of their Homes discount Points Are paid by the seller to the Lender to make up for the difference Between the a mortgage rate and  higher Market interest rate. Appraisals also can be problematic for the seller and agent when a a mortgage is involved. To protect the Veteran from overpaying the a will not allow the Veteran to borrow for the Purchase of the Home any More than its appraised value. And a appraisers Are More cautious on How they appraise a property for a a loan a Ellinger of Mac mortgage says. Many lenders Are afraid of the financial exposure and bureaucratic probe lems a triggered by a soured a loan. So the same appraiser might put a lower value on a property to be financed by the a than say by a conventional loan Al linger says. A lenders done to like a Loans that default. A that a because the Lender has to go through a very cumbersome process to recoup the losses he experiences a he says although a Loans Are backed by the government in Large measure remember that private lenders actually originate such Loans while a a Cut appraisal a As a Low appraisal is known could prove irksome to a seller it could also Benefit the buyer if it leads to a reduction in Price. But a buyer who must compete with other contenders for a property May not want to attempt a a mortgage. A a a a it a however in the buyers Market that prevails in Many areas these Days Many Sellers will accept the terms and conditions tied to a a contract says Bregman a real estate attorney in Bethesda my. A the a is an especially Good loan in a buyers Market a he says. No Mutual funds the Mutual funds list did not arrive in time for this edition because of technical difficulties