You must consider the transaction costs involved in any investment type.  Most bank accounts such as savings accounts, money market accounts and certificates of deposit do not have charges to open the account.  For most investment accounts, the costs are commissions but transaction costs can also be the fees on a bank account or the charges to use an ATM or the fees some banks charge to make electronic payments.  Whether or not these bank fees are significant or not, the additional charges can add up quickly and erode the interest rate earned on these accounts.  Reducing transaction costs  can help total savings dramatically.

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