Even if you save rather than invest, you’re still participating in the capital markets. That’s because when you put your money in a bank account, that bank will pay you interest in return for the use of your savings. That’s true whether you open a
money market account
or a regular savings account or purchase a
certificate of deposit
(CD).
Once your money has been deposited, banks can use it to offer loans to companies and to individuals, feeding the capital markets. And as the interest on your savings
compounds,
it adds to your wealth, providing you with new capital that you might eventually choose to invest in stock or use as a down payment on a new home, cycling cash back into the capital markets.
Finding Saftey
The FDIC insures the value of savings accounts up to $100,000 per depositor per bank. (Self-directed retirement accounts such as IRAs are insured up to $250,000 if they’re invested in bank products.) The trade off for the security of FDIC insurance is that the return from interest is low compared to what investors potentially earn on uninsured investments.
Professor Samuel L. Hayes,
Harvard Business
School
Professor 
