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
advertisement

Ask Dr. Don

Use bonds for school, avoid tax?

Dear Dr. Don, This is a bad news, good news situation that I'm asking about. I just received several Series EE and Series I savings bonds. I am the so-called payable-on-death beneficiary on the bonds. My mom, who purchased... Read more

advertisement

Connect with us