Quora Answer: Is It True That Savings in a Bank Account is Useless?

The following is my answer to a Quora question: “Is it true that savings in a bank account is useless?”

Savings in a bank account are not useless.  People put money there for accessibility and liquidity. Some people also use them to put aside excess funds from their earnings credited into the account from whatever source of income they have.  However, savings are not optimal for growing wealth.  The interest rate is negligible, and way below the inflation rate.  They are not meant for that use.  When you have a substantial amount in your savings, you should consider investing into some sort of index fund or an investment-linked plan.