It feels nice to earn 5% plus interest on my savings right now, but it isn’t actually great for anything other than funds I need to spend near-term. In the charts below I can see the return of cash which simulates current interest rates like the current one of 5% plus. Even when earning high interest cash is a terrible long-term investment.
Once you adjust for inflation it is even worse.
This is why I try to make sure I keep less 10% of my net worth in cash including all checking, savings, brokerage accounts, etc. That being said it is really nice peace of mind to have a decent emergency fund with cash or cash like investments.
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How I Invest 