“People who simply want to save money — especially those who are older or those who cannot manage the complexities of a financial portfolio — continue to be caught in a bind. They either lose ground, because interest rate returns are low while food and energy costs are going up, or they have to consider making investments that are relatively risky and require longer term commitment.”
That’s part of the intro from a NY Times “Room for Debate” discussion featuring Dave Ramsey and five other experts, who talk about the limits of getting a guaranteed return on your savings with CDs, simple savings accounts, and other non-risky, non-flashy spots to park money.
The gist is: Considering the paltry returns offered by these accounts, you’re actually losing money by using them for savings—because they don’t even keep up with inflation. Nowadays, that’s the risk to not wanting to take on any risk.