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What's the value of a "savings account" in 2018, though? Not to be flippant, but it's a bit anachronistic to even care about something that provides so little
by nkozyra 8y ago
What's the value of a "savings account" in 2018, though? Not to be flippant, but it's a bit anachronistic to even care about something that provides so little ROI, and if people are deriving greater meaning from that I'd hope the analysis is more nuanced.
- caymanjim 8y agoThere's not much point in investing less than $1000. People are getting hung up on the "savings" part of this. It could be a checking account, it could be cash in a jar. The point is that it's the amount of money available that isn't tied up in material assets like real estate, a car, etc. or isn't invested in something like a 401(k).
- frockington 8y agoThan I have ~$500 most of the time. Why would anyone willing lose money every year by hoarding it in a savings account/in a jar
- vonmoltke 8y ago> People are getting hung up on the "savings" part of this. It could be a checking account, it could be cash in a jar. People are "hung up" on it because, per the linked article, the survey literally asked about savings accounts. I have more money sitting in cash at home than I do in my savings accounts. The only reason my wife and I have savings accounts is Bank of America's Keep the Change thing.
- danesparza 8y ago> What's the value of a "savings account" in 2018, though? Low risk emergency fund or sunk cost funds. If you purchase everything on credit or debt, you're asking for trouble in the long run. Debt or credit involves substantially more risk.
- vonmoltke 8y agoIf you purchase everything from a savings account you are going to get eaten alive in withdrawal fees. Note the survey question literally asked about "savings accounts". I would answer that question with a number below $1,000, but I still have a significant reserve and no credit card balances.
- djrogers 8y agoI haven't paid a withdrawl fee on a savings account in decades, and I use them for all my sinking funds.
- mattkrause 8y agoRegulation D limits savings accounts to six withdrawals a month, after which almost every bank charges you an “excess activity” fee.
- djrogers 8y agoSinking funds aren't generally used for large numbers of purchases - but if they happen to be one month, you can just make a single transfer to a checking account.
- deleted 8y ago[deleted]