Financial Literacy and Savings Account Returns

Florian Deuflhard, Dimitris Georgarakos and Roman Inderst

Journal of the European Economic Association, 2019, vol. 17, issue 1, 131-164

Abstract: Savings accounts are owned by most households, but little is known about the performance of households’ investments. We create a unique dataset by matching information on individual savings accounts from the DNB Household Survey with market data on account-specific interest rates and characteristics. We document heterogeneity in returns across households, which can be partly explained by financial sophistication. A one-standard deviation increase in financial literacy is associated with a 12% increase compared to the median interest rate. We isolate the usage of modern technology (online accounts) as one channel through which financial literacy has a positive association with returns.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://hdl.handle.net/10.1093/jeea/jvy003 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Financial literacy and savings account returns (2015)
Working Paper: Financial literacy and savings account returns (2015)
Working Paper: Financial Literacy and Savings Account Returns (2014)
Working Paper: Financial Literacy and Savings Account Returns (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jeurec:v:17:y:2019:i:1:p:131-164.

Access Statistics for this article

Journal of the European Economic Association is currently edited by Romain Wacziarg

More articles in Journal of the European Economic Association from European Economic Association
Bibliographic data for series maintained by Oxford University Press ().