Many consumers feel that the modest rates from banks are safer than the risks of the stock market.
And after years of neglecting small savers, banks are trying to get them back by advertising free checking, higher rates on money market accounts, or better service. Some are offering incentives like cellular phones. Credit Suisse First Boston cites Federal Reserve data in saying that deposits at banks rose about 10 percent during the first quarter, compared to the year before. Banks will have to offer better deals to get their customers back, and some are acquiring other banks to gain depositors. Commerce Bancorp is advertising its late and weekend hours.