Originally Posted by Amnorix
The miracle of compound interest is a helluva lot less miraculous now that interest rates are substantially south of 1%. You should look at bank accounts as rainy day funds and not as investments at all, given current interest rates. Even CDs are not offering any kind of significant rate that is worth looking at.
Just for fun, with an interest rate of 8%, a $10K initial deposit into a savings account would yield $20K in 9 years. But with an interest rate of 1.5%, it would take 48 years to reach that amount.
That is fun to think about, no?
So, what can get me an annual return on my investment of 8%? That's what I want.