Current Events > It's really important to have a savings account so your money earns interest

(+) Yeah! (+)

NeonTentacles posted...

There's plenty of safe investment options like bonds, though they usually don't pay a lot. More risk = More reward >_>

Or you can just buy and sell stuff.

runewalshPSiv posted...

$5 at my credit union.

Same here. They also reserve the $5 for you so you don't accidentally take it. If you close the account they'll give it to you, though.

NeonTentacles posted...

Cuz banks are literally using your money to make themselves money. They're only required to hold a minimum 10% of the total money deposited in it. The rest they can invest or use for loans and shit and make money off of that >_>

Yes, i am aware and pointed that out in my post

But the $.02 they make off of your low balance account doesnt offset costs

That is why they waive fees with higher balances

Garioshi posted...

I dunno, maybe because we don't stop them from doing merger affer merger and consolidating power nonstop and then breaking the world economy in half every decade by gambling with everything we "own"? A free savings account seems like the least they can do.

It's almost like providing a service costs money.

Again, if your balance is so low that you're getting hit with fees, just close the account and keep the money in your sock drawer until you have enough to open an account that doesn't bang you for fees.

I've worked in accounting/finance since I was 19 (now 44) and it really does boggle my mind how little people know when it comes to financial responsibility. And I'm not saying it to be snotty or "holier than thou". The information is out there. Go find it.

I know my bank has this thing where they only pay 0.5% interest if your balance is below 50k and 1% if it's above 50k

Slayer2111 posted...

Or you can just buy and sell stuff.

Not everyone really has the know-how to do that. Id rather keep my money and know its there if I need it rather than potentially lose it.

Anxiety is fun!

[LFAQs-redacted-quote]


But it's not a direct 1:1.

Like, the $1500 in your account isn't being used to maintain your account. MAYBE a dollar of it is.

But the rest of it is being used to pay consultants that are maintaining million dollar accounts.

Not to stan for the banks, but those million dollar accounts is what allows them to afford to maintain thousands and thousands of $1500 accounts.