Is it worth keeping money in the bank anymore?

[Ella]

I remember a savings account at one time being a good way to earn interest on your money just sitting in the bank but it seems like thanks to inflation, you end up losing money by letting it sit there and the interest does nothing to counteract this. I don't know of any banks these days that give you higher than 0.70%! When I opened my first bank account, I had one giving out 2.3%! 

[Quinten]

Of course it's worth it. Not sure where you heard about it not helping, but that money won't decrease if that's what you mean. Your interest rate may go down, but your total in money shouldn't go down. 

I use credit unions instead. Better than banks imo and give you more options I think. 

[James]

I really only enjoy having 6 months - 12 months worth of day to day expenses in the savings account and I like to have the rest of the cash invested. Interest rates in savings accounts right now are next to nothing. I was buying up a ton of CDs a few years back when I was able to lock in 3% rates and I felt ok with that since that would average out with inflation. 

I could understand the trouble finding places to deploy cash right now though especially if you perceive things as being expensive or the trades to crowded. 

Of course it is not the worst thing in the world to have the cash laying around just as long as you understand over time inflation is going to make that balance have less spending power. 

[Mila]

In terms of interest, I would say no but having money saved in a safe place is a good idea. Like James said, having a good 6 months to 1 year worth of expenses covered is ideal because you never know what might happen. Yes, the USD value is going down but you can still manage. The inflation is only started and it will take a long time before you notice it in a big way everywhere. And not to bring in politics but assuming Trump runs and wins the next election, I suspect him to put buying power back in working families' hands again. Never a big fan of his but he was the only one to address the establishment and the corruption in this country which I am all for!

[Emma]

I haven't cared about interest in years. Not since I first opened a bank account. The point of having a savings is more so to have a nest to fall back on. It is easy to add to and in most cases, easy to access. Some banks will have holding periods and only allow you to take out so much but it is still worth having.