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Savings Accounts...
Lots of people have savings accounts. I have a question:
Why?
I was reading an article about maximizing your account and while it was obviously talking about savings in the general sense, rather than a savings account there's an assumption that that's where you're going to put your money. Banks are full of savings accounts, but I can't even get any money on a CD. BankRate has the best 1 year CD rate at a yield of 1.74%. Why even bother?
Of course what else do we do with our money? Stock market prices are historically high and the markets don't seem safe to me. I feel like i'm being played at all sides. Besides I'd like to have some money that isn't in the markets, but the game seems rigged to keep me in. 0% fed rate doesn't leave me a lot of options. I have a few treasuries, but even they're quite volatile.
So maybe we need a new name for savings accounts. "Bank presents", maybe?
Why?
I was reading an article about maximizing your account and while it was obviously talking about savings in the general sense, rather than a savings account there's an assumption that that's where you're going to put your money. Banks are full of savings accounts, but I can't even get any money on a CD. BankRate has the best 1 year CD rate at a yield of 1.74%. Why even bother?
Of course what else do we do with our money? Stock market prices are historically high and the markets don't seem safe to me. I feel like i'm being played at all sides. Besides I'd like to have some money that isn't in the markets, but the game seems rigged to keep me in. 0% fed rate doesn't leave me a lot of options. I have a few treasuries, but even they're quite volatile.
So maybe we need a new name for savings accounts. "Bank presents", maybe?
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Comment by Nathan Andover on January 24, 2010 at 12:13am -
Good point. When online savings accounts first popped up there were some pretty good rates being offered. Now that many of us have signed up for accounts and use the online banks (such as Emigrant Direct) the rates have crashed to the point of being almost worthless.
Your feeling of being played is why I'm trying to invest in something I can monitor. Myself. I'm spending money on training myself and also in starting a business. At least I know where my money is going and I'm having fun trying to turn a profit. I have safeguards in place so I won't lose a lot of money and the upside has good potential.
I mainly use my savings accounts as a digital transport and storage locker for my funds. I still invest some money each month into the market (401K primarily), but I want to continue being proactive in investing in myself.
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Comment by Vitaly Indinko on January 29, 2010 at 9:43pm -
Investing in yourself is always wise.
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