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==Interest Rates of Bank Deposits==
==Interest Rates of Bank Deposits==
While [[banks]] can charge fees for services, mostly people depositing [[money]] in a bank will seem to see the amount of that money slightly increase over a long time due to [[interest rate]]s that the bank will pay. However, for several years now the [[inflation rate]] (see also [[Consumer Price Index]]) is greater than the interest money paid by the banks, thus one actually loses [[purchasing power|money]] compared to investing in [[tangibles]] or [[inflation hedge]]s. For example, a [[good]] or service costing $1000 in 2004, the same item would cost $1,242.89<ref>http://www.usinflationcalculator.com The [[US Inflation Calculator]] measures how the [[buying power]] or [[purchasing power]] of the [[US dollar]] has changed over the years by using the latest [[Bureau of Labor Statistics]] ([[BLS]]) [[inflation]] information provided in the [[Consumer Price Index]] ([[CPI]]). http://www.usinflationcalculator.com/frequently-asked-questions-faqs/#HowInflationCalculatorWorks Accessed April 6, 2014</ref> ten years later in 2014 due to the cumulative rate of inflation of 24.3% over those ten years.
While [[banks]] can charge fees for services, mostly people depositing [[money]] in a bank will seem to see the amount of that money slightly increase over a long time due to [[interest rate]]s that the bank will pay. However, for several years now the [[inflation rate]] (see also [[Consumer Price Index]]) is greater than the interest money paid by the banks, thus one actually loses [[purchasing power|money]] compared to investing in [[tangibles]] or [[inflation hedge]]s. For example, a [[good]] or service costing $1000 in 2004, the same item would cost $1,242.89<ref>http://www.usinflationcalculator.com The [[US Inflation Calculator]] measures how the [[buying power]] or [[purchasing power]] of the [[US dollar]] has changed over the years by using the latest [[Bureau of Labor Statistics]] ([[BLS]]) [[inflation]] information provided in the [[Consumer Price Index]] ([[CPI]]). http://www.usinflationcalculator.com/frequently-asked-questions-faqs/#HowInflationCalculatorWorks Accessed April 6, 2014</ref> ten years later in 2014 due to the cumulative rate of inflation of 24.3% over those ten years.
Banks can also offer [[certificates of deposit]] where the money is tied up for a set length of time earning a set interest rate. Generally speaking, the longer the period of time the money is tied up, the greater the interest rate it will earn. But again, it is better to invest in tangibles due to the low interest rates offered by the banks compared to the actual cumulative inflation rate. However while being a [[hedge against inflation]], tangible [[private property|property]], such as productive [[farm]]land, food and water storage, [[precious metals]], [[firearms]], and [[ammunition]] do not necessarily have the same rapid [[liquidity]] and [[fungibility]] as [[fiat currency]].<ref>[http://survivalblog.com/2010/09/shifting-to-tangibles-in-an-ag.html Shifting to Tangibles in an Age of Inflation] Accessed April 6, 2014</ref>
Interest rates can be either fixed ([[fixed rates]]) or they can change ([[adjustable rates]]). Rates on [[savings]] and [[checking]] accounts in a bank will usually change over time whereas a [[certificate of deposit]] will usually have a fixed rate for the life of the contract.
Interest rates can be either fixed ([[fixed rates]]) or they can change ([[adjustable rates]]). Rates on [[savings]] and [[checking]] accounts in a bank will usually change over time whereas a [[certificate of deposit]] will usually have a fixed rate for the life of the contract.