Might be a stupid question, but why exactly do people still put so much money in basic savings and checking accounts when the interest rates have been <1% for more than a decade? Read this recently. Apparently, there is currently about $3 Trillion in non-interest bearing accounts and $10 Trillion in basic interest-bearing accounts insured by the FDIC.
Brokerage accounts, ETFs, and mutual funds have never been more accessible, and even if you're completely incompetent, you should still be able to squeeze out at least 5% returns per year on average (several multiples more than the best vanilla savings account).
Even if you're relatively risk averse and value the safety of a savings account, you'd still make more money investing in investment-grade fixed income securities and enjoy a comparable amount of risk.
I understand that some of that money is in saving/checking accounts for liquidity reasons, but why $13 Trillion? That's about $40,000 per person in the US. Seems very excessive.
Just wanted to learn a little more about how the consumer side of the bank works.