[HomeRepairsDude]

Although many savings accounts are earning interest which is absolutely putrid these days, it's still useful to have a savings account in principal, with money which you will only touch when you have to. Of course some people may say CD's are better because of the much better interest rate, but the problem with those is that you can't exactly take the money out when you want to, without suffering a penalty. What are your thoughts on savings accounts?

[invincible]

I know that saving money in a bank is good but I have heard someone told me that it is bad. He said that saving money in banks is useless. The money you save in a bank will decrease in value because the price of products usually go up. So when you withdraw your money then you have to buy products in a higher price compared to its price when you deposited the money.

[cero]

We have always had one and I am sure we always will. You still need to remember that when times are tough, every penny counts. That is the way I see it at least, I am not saying I keep a ton in there as we do also invest, but some is better than none.

[Winterwall]

I have a savings account and put most of my money there. Of course I don't save money the way for the interest they offers. I just want to keep my money there and take it whenever I need it.

[Allie]

I don't really care about the interest either. I save so I will have something available if I have an emergency. I don't touch it unless there is something I have to do for an emergency situation.

[Izzie]

We don't have a savings account because there is just nothing to save it takes every dime we have every month just to pay the bills and buy groceries.

[khoshlen]

Having a savings account is definitely a very good idea. You never know when you will need to fork out money for unexpected expenses. I think the key is to make a financial plan every month, to see how much you are prepared to spend and then keep the rest in a savings account.
It's not always easy, but one useful tip that I found was to try to live slightly below your means. It does help.

[khoshlen]

Originally Posted by invincible

I know that saving money in a bank is good but I have heard someone told me that it is bad. He said that saving money in banks is useless. The money you save in a bank will decrease in value because the price of products usually go up. So when you withdraw your money then you have to buy products in a higher price compared to its price when you deposited the money.

There is a sound economic explanation behind this interest issue. The only thing that one needs to ask oneself is whether it is better to still have some sort of savings compared to no savings at all. It's true that money's value tends to go down over time, but you still have some purchasing power. In my opinion having something is far better than having nothing at all.