What are the advantages of saving money in a bank?
Money saved in a bank is generally insured up to $100,000. Money saved under a mattress is not.
Here's what I have:
- There is the advantage of security. The money is safe from theft and in certain circumstances the money will be insured by the federal government if any problems befall the bank.
- Due to inflation, if your money is not invested or placed in an account that is earning more than the current rate of inflation, you are actually losing money. Therefore it is essential that you save your money in an account that offers an interest rate that is above the current rate of inflation.