ING APY dropped again

[Slug]

I can't see the point of large sums in low interest savings. Price increases in the grocery store, gas pump [9% here]and municipality fees up 25% reads inflation. [Libyan oil goes primarily to Europe, China, none to N America]

I believe this loss of buying power translates to loss on savings that is higher than risk of an index fund. Investors can instantly transfer to Money Market if they feel 'the sky is falling'...their economy is/will soon crash. What is causing this level of fear?

It's all about risk tolerance. Some people put their emergency fund under the mattress. Some put it all in Open Table (OPEN). I land somewhere in between and park mine in money markets and CD's.