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.

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