People should save. But there needs to be more of an incentive to do it. These saving rates don’t even cover the cost of inflation. One of the unfortunate side effects of having the fed rate at such a low level [0 to .25 percent] is that people who want to save are effectively punished for doing so. A 5-year CD at 1.75 percent?! That is outrageous. Gordon Wilson, as quoted in Planet Money’s Why You’re Not Saving

People should save. But there needs to be more of an incentive to do it. These saving rates don’t even cover the cost of inflation.
One of the unfortunate side effects of having the fed rate at such a low level [0 to .25 percent] is that people who want to save are effectively punished for doing so. A 5-year CD at 1.75 percent?! That is outrageous.
Gordon Wilson, as quoted in Planet Money’s Why You’re Not Saving

Notes