Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/154285 
Year of Publication: 
2015
Series/Report no.: 
ECB Working Paper No. 1852
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
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.
Subjects: 
Financial literacy
household finance
interest rates
savings accounts
JEL: 
D12
E21
G11
G21
ISBN: 
978-92-899-1665-3
Document Type: 
Working Paper

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