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What I got from your reply (thank you, btw) is that the APY paid to me on my money in savings from my bank is not keeping up with inflation. In your example, if the goods $100 buys today will cost $103 next year, then I need a savings vehicle with an APY of about 3% just to keep up. Which means that I am doing myself an injustice keeping my money in an account with an APY of 0.5% (a full 2.5% below my needed pace).

Needless to say, I'm going to be looking into online banks and money market funds straight away. I'm just a little confused as to how to make it all work out with direct deposit, checking account, money transfers, availability...and so on...


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