Since the savings rates are so low, why bother even putting money into a bank for an emergency fund? Of course the money will be insured but it is really worth the hassle just to earn 2%?

Low interest rates are not an incentive to save especially for those who have little debt. Having an emergency fund is important but putting that money into a bank to earn a pittance is not necessarily what people think of when they wave. I know I don’t…

“It’s a direct wealth transfer from savers and retirees to overly indebted borrowers,” says Greg McBride, senior financial analyst at Bankrate.com.

I remember when interest rates were higher and allowed me to save enough to have a good down payment on my condo before the prices skyrocketed. Then as the rates decreased and housing. I know people who saved for other large ticket items through CDs and savings accounts even several years ago. Now, though saving is prudent what does that prudency give you?

Saving is a good, but find other methods to save money for an emergency fund or seek out the best rates you can. This is better than just socking money away and putting it in a can or under a mattress for long term savings. If you don’t need to use the money for several months or even years you might be able to find better rates in interest. Currently, the best rates are for larger minimum deposit amounts of at least $1,000 or more and online banks generally offer better rates.