03/03/2021
Most savings accounts have 0.01 - 0.05% APY. If you put $10k in a savings account earning 0.01%, your balance after a year would be $10,001. Put that $10,000 in a high-yield savings account for the same amount of time, and you’ll earn about $50. Of course, compounding will help as the years go on. However after 10 years at 0.5% you'd only make $500 on that $10k.
Inflation is causing everything to be more expensive. Earning with many APY accounts is LOSING money. Cause in that one year, coffee went up .60 cents. Gas went up .80 cents. Milk went up .17 cents. Each year, the value of your dollar decreases more than your savings account helps it earn back. $40k in 1990 and $40k in 2000 and $40k in 2010 aren't the same man.
There are better ways to store and save. Don't get me wrong, you NEED savings accounts. But you shouldn't solely rely on them!
