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> However, the percentage of people with $0 in savings has climbed to 39 percent from 34 percent in 2016. When savings accounts are yielding 0.02%, what's the

by Cacti 9y ago

> However, the percentage of people with $0 in savings has climbed to 39 percent from 34 percent in 2016. When savings accounts are yielding 0.02%, what's the point? Might as well keep it in checking or an actual investment.

thomas11 9y ago
You can get 1.35% currently with the free online account at Ally (no affiliation). Still below inflation but much better than 0.02%. Reliable access to a computer or smartphone can be an issue for the really poor but most should be fine.
TACIXAT 9y ago
The people without savings aren't holding all their money in stocks. 46% of people hold no investments. [0] I'm betting there is a large intersection between that 46% and the 39% with no savings. 0. http://money.cnn.com/2017/10/20/investing/trump-stock-market-americans/index.html http://money.cnn.com/2017/10/20/investing/trump-stock-market...
- SilasX 9y ago
  The parent listed checking accounts, not just stocks, as the alternative, and the former are widely used.
waterphone 9y ago
1%+ APY savings accounts are commonly available outside of the mega bank world. Online banks (which are real FDIC insured banks that just don't have the overhead of national chains and all their branches) and credit unions have competitive rates. https://www.doctorofcredit.com/high-interest-savings-to-get/ https://www.doctorofcredit.com/high-interest-savings-to-get/
wahern 9y ago
When I opened up my first bank account, a checking account, a mail theft ring operating at my college stole the ATM card and drained the account. It took a couple of weeks before the bank refunded my account, but that's only because there was ATM footage of the fraudulent withdrawal. Under different circumstances it might have taken much longer to get the money back, if at all. To this day I always keep a savings account with enough money to cover emergency short-term expenses, and to accumulate funds for large, non-deferrable expenses like property or income taxes that I couldn't easily put on a credit card. Importantly this account is not linked to my checking account for overdraft protection, nor permits ACH withdrawals. I learned later in life that savvy banking customers (e.g. financial professionals) will create multiple, special purpose accounts with various withdrawal and deposit limits precisely to minimize the risk of fraud, mishaps, etc. But a simple unlinked savings account works well for most people.

by Cacti 9y ago

thomas11 9y ago

You can get 1.35% currently with the free online account at Ally (no affiliation). Still below inflation but much better than 0.02%. Reliable access to a computer or smartphone can be an issue for the really poor but most should be fine.

TACIXAT 9y ago

The people without savings aren't holding all their money in stocks. 46% of people hold no investments. [0] I'm betting there is a large intersection between that 46% and the 39% with no savings. 0. http://money.cnn.com/2017/10/20/investing/trump-stock-market-americans/index.html http://money.cnn.com/2017/10/20/investing/trump-stock-market...

SilasX 9y ago
The parent listed checking accounts, not just stocks, as the alternative, and the former are widely used.

waterphone 9y ago

1%+ APY savings accounts are commonly available outside of the mega bank world. Online banks (which are real FDIC insured banks that just don't have the overhead of national chains and all their branches) and credit unions have competitive rates. https://www.doctorofcredit.com/high-interest-savings-to-get/ https://www.doctorofcredit.com/high-interest-savings-to-get/

wahern 9y ago

When I opened up my first bank account, a checking account, a mail theft ring operating at my college stole the ATM card and drained the account. It took a couple of weeks before the bank refunded my account, but that's only because there was ATM footage of the fraudulent withdrawal. Under different circumstances it might have taken much longer to get the money back, if at all. To this day I always keep a savings account with enough money to cover emergency short-term expenses, and to accumulate funds for large, non-deferrable expenses like property or income taxes that I couldn't easily put on a credit card. Importantly this account is not linked to my checking account for overdraft protection, nor permits ACH withdrawals. I learned later in life that savvy banking customers (e.g. financial professionals) will create multiple, special purpose accounts with various withdrawal and deposit limits precisely to minimize the risk of fraud, mishaps, etc. But a simple unlinked savings account works well for most people.