What’s the point of a Savings Account?
Would someone please answer this question for me? What’s the point of a Savings Account? I cannot figure out the logic in having one with any worthwhile amount of money in it. At best, everyone I know uses it to just transfer money from when their checking account balance gets too low. My bank is having a ‘super’ online account deal where you can get up to a whopping 3.30% return every year. That’s fantastic! But wait, what’s the fine print? You have to have at least $250,000 in the account to get that percentage rate. Here’s the breakdown, taken from the website
The best rate I or my friends could realistically expect from this is from 1-2%. What on earth is the point. You get better returns from Credit Card Cash Back programs. What the banks don’t out front tell you is while they hold on to your money, they can list that balance as an asset of sorts to lend against, so they lend your money out at 5-15% or more, and give you a whole 2% back of that. The bank makes so much more off your account than you do.
So someone please, tell me what the point and purpose of a Savings Account would be. PS – If you have that $250,000 in your account to get that 3.30%, you’re only insured up to $100,000 of it. Lame.
