Interest on saving is extremely low, How would you use your money

You can look into things like an account with Ally bank which is an online bank here in the US. Their MoneyMarket rate is roughly .80%. I myself spread my money out between bonds, stocks and moneymarket so I always have access to money if need be and have spread my risk portfolio a lot as well.

Stuff the money under a mattress. Buy Treasury Inflation Protected Securities (TIPS) Buy IBonds Start an online business.

The interest is pretty low here too. I guess its because of the world economy and stuff. There really is nothing that I can do about it. So I just leave my money in the investments that I have the interest rate for my savings is super low but the money in investments is giving a slightly higher interest rate. Its good that its earning some interest in a bank than nothing at home.

Totally.. when you place your money in a bank for a regular savings, it won't yield as much. But I am still thinking of putting money in a bank. Not on a regular savings since it won't give me enough in return. I am planning of having my money on a time deposit basis. In that way, my money will soon have a greater interest in it. The only disadvantage is that, you cannot withdraw the money in demand. If you preterminate your term, you will have penalties in it. I think, it's still good to have money in a bank for safekeeping.

According to John Maynard Keynes, when a country's economy continues to decline, thus approaching depression, people of this country should continue to spend their money in order to pump prime their economy. Think about it, when all of you put your money on a bank where savings rate is low, what would the businesses and government use to circulate their money? Invest on this people cause they will be the one saving your economy.

Every little bit helps I believe. I prefer to divide the money. SOme will be plays on savings and investments, and the other money I will spend.

I think it's still important to keep some money in the bank...everyone needs a nest egg they can access in emergencies. As you say, though, the interest you can earn on your savings this year is negligible and you will slowly lose the value of your money through inflation. The shoppers aren't being totally irrational. What I prefer to do is invest some of my money so it can grow. Stocks can be risky, but there are a lot of good, solid companies out there who don't have much debt and pay regular dividends that far exceed savings account rates. You do have to do your research first and accept the risk involved, but I think it's worth it.

If I had enough money to spare, maybe about 500 dollars or so, I would invest it on a Certificate of Deposit. CDs are low-risk and pay higher interest than savings accounts at the cost of easy access. They have to be held at the bank for a predetermined period of time before you can withdraw the deposit and interest. I've been planning to purchase CDs for a while now, but I don't have the funds yet.

This is a very serious problem for almost every one of us. Just keeping our money in line with inflation has been impossible for many years now. Saving for the future is an impossible dream. Not surprising that many people resort to very dangerous investments, especially those offered on the Internet such as HYIP and trippler schemes which are always going to turn scam. But earning more interest in one day than the banks offer in a whole year is very tempting. Stocks and forex trading is equally unreliable and risky, especially for those who don't have the necessary inside knowledge. But the banks are still making huge profits. The question is how? If you feel that the banks are involved in a huge Ponzi scheme, you might be correct. There are good reasons not to trust your bank! What is the answer, and what is in store for the future is anyone's guess. I don't blame people spending their money as soon as they get it. There really isn't any other choice.

I was reading a similar article about how consumer spending was up because people were not earning any interest on their money that was sitting in the bank. I am still slowly adding to my savings. I am spending a bit more, but not withdrawing from my savings account. I put some money into a CD right before the banks all tanked.

It's true,interest in savings account does not worth that much.The only good thing with it is to keep your money safely as long as it's a reputable bank.It's better to start a business with your money .At least you can earn 10 to 20 %profit out of it.We can invest in mutual funds and unit investment monetary fund which yields higher interest.Stock market is also an excellent investment if you are knowledgeable on it.

Maybe you can try to invest it in concrete investments and items like gold or property. Spend it up on goods which can be stocked for future use. Try out those bonds and treasury bills if there are any. Or better yet, try to invest in the stock markets of booming countries. Many investors find the stock market of other countries to be a safe haven in troubling times of the market and economy that they are in. Another things is to boost up your emergency fund. If you don't have anything else to do with the money, might as well pour it out for your emergency fund or business ventures.