Amends the Internal Revenue Code to allow a credit against the personal income tax for the amount (not to exceed $2,500) received by the individual as interest on savings accounts. Requires reduction of such credit by five percent of the amount by which the adjusted gross income of the taxpayer exceeds $20,000. Sets a minimum credit amount of $1,000. Requires adjustment of such dollar amounts according to a defined inflation adjustment factor. Authorizes the Secretary of the Treasury to prescribe regulations allocating interest credited to joint accounts.