savings

5 money myths that are financial nonsense

No. 1: Banks are the best place for money
Myth No. 1: Banks are the best place for money © Alex Hubenov/Shutterstock.com

No. 1: Banks are the best place for money

Put your money in a bank. That's the safest place, right? Sure, it is safer than stuffing it under your mattress. Or is it?

"Savings accounts are the equivalent of modern-day mattress stuffing," says Elle Kaplan, CEO of Lexion Capital Management, a New York City-based asset management firm. "Savings accounts cause you to lose money over time because their low interest rates do not keep pace with inflation."

Cardone says this myth stems from a time when our grandparents or parents were able to put money in a bank account and get a hefty return. This is no longer true.

"Your parents would earn more in one month than you could earn the entire year (in interest)," he says.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

How often to compound interest?

Dear Dr. Don, Is it better to have interest compounded on your money daily, monthly or quarterly? Which gives you the most for your money invested? Thanks, -- Jan Juxtapose Dear Jan, With all else being equal, the more... Read more

advertisement
Partner Center
advertisement

Connect with us