It's not like you don't know this: savers have been punished over the past few years and will continue to be punished. That is because interest rates are artificially low: this benefits businesses and borrowers, but not individuals looking for some safe returns. This is especially bad for the elderly and retired, who have no income coming in.
If you don't believe me, the Wall Street Journal wrote about it.
My high-yield savings account is now at 1%. Recently, a financial mag had a headline trumpeting "Get 5 times more for your savings!" What they meant was that you could move money from a .2% account to 1%. That wouldn't make much difference, unless you had a big balance. The $5000 account would get $50 vs $12--good for some groceries, I guess. Oh yeah--you have to pay taxes on the interest, so the spread just contracted.
So why save? What else is the frugal person to do?
How I wish my children were in the market for a house!