Quote:
Originally Posted by Broken Arrow
Pragmatically speaking, however, that does not mean a bank savings account can not be used as a form of investing. And if it is used as such, then it is indeed a form of investing.
Also, please understand that even saving money in a bank savings account has its own forms of risk. So, I'm sorry, but I must also disagree with the definition provided in that link. If a bank saving is without risk, then FDIC does not need to exist. But its does, and for good reasons. Also, bottom line, I'm earning 4% APY through my own bank account. Agree or disagree, that's money in the bank. Literally.  |
I understand what you are trying to say. I concur. It surely can be used for investing but its not really an investing vehicle. I do take my CC balance transfer for 0% and put in CD to get free interest money. So it is one way of investing. I don't deny that but it not a true investing vehicle.
You said banking also has risk associate with it. Yeah but its that risk is different than investment risk. Banking risk more towards bank going under whereas the investment risk when the company invested goes under and volatile all the time.
As you said, if I can earn a good return who cares whether bank is a investing or savings..
