Re: Savings accounts are a joke...[ Edited ]
09-24-2012 01:48 PM - edited 09-24-2012 01:51 PM
You put money at online banking. That will get you around 0.8% interest rate, which is much better than 0.05% you seen across major banks.
As for why do one need savings account, it is because savings account is liquidable. Sure you can invest those money into stocks, social lending, etc that offers much higher return, but you won't be able to cash them out immediately if find yourselves in an emergency.
As a note, interest rate will stay the same until late 2014. Federal Reserve won't increase interest rate until then.
Citi Forward (12/2010) | Citi Dividend (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)