According to a new study from Bankrate.com, many millennials think cash is the best long-term investment. Almost one in three millennials said cash instruments, such as savings accounts and certificates of deposit, are the best place to invest money they won’t need for the next 10 years. That compares with only 21 percent of older generations, most of whom prefer the stock market.
Cash is, of course, not a good investment, especially these days. Only 18 percent of all American adults are earning more than 1.5 percent on their savings, at a time when top-yielding national available savings and money-market accounts are yielding interest rates of more than 2 percent. Baby boomers are the generation most likely to earn more than 1.5 percent on their cash.
Millennials - defined as those between the ages of 18 and 37 - aren't even doing that well. More than one in five millennials said they’re earning less than 1 percent interest on their savings, while roughly 19 percentsaid they’re not earning any interest whatsoever, according to the study.
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