2. “Put all your savings in a traditional bank account — it’s the safest.”
This used to be sound advice… back when savings accounts earned actual interest.
But in 2025, most traditional banks still pay shockingly low APY, despite higher interest rates and inflation pressures.
Your money loses purchasing power every single month if you store everything in low-yield savings.
What to do instead:
Use:
-
high-yield online savings accounts,
-
money market accounts,
-
Treasury bills,
-
or a mix of the above.
These options offer far better returns while remaining essentially low-risk.
Safety is good — stagnation is not.
