Why do some people still choose fixed deposits even if they don't beat inflation?

I have been saving and investing for over fifty years. I learned a long time ago chasing some pennies can cost you pounds.

I moved to the US from the UK in 2006. I was surprised to find that where in Britain I had free banking because market forces meant banks could not, at that time, risk imposing bank charges in the US bank charges were the norm and plain extortionate .

So I made sure that I put in enough cash in terms of making that cash reasonably easy to get too but that I could maintain a balance with certain accounts that allowed me to claim free banking.

Nineteen years later. I still hold those accounts. My bank has been bought out twice in all of those years and the new owners of the bank, keep me grandfathered in on the old contracts, but will regularly call me to ask me to settle those account and move them to a new better account where I can enjoy the benefits of higher interest rates.

Plus they don’t mention I will also enjoy the benefits of paying bank fees until I doubble or triple the cash on permanent loan to them.

So for me I will hold my low returning accounts with their old free banking allowance for as long as I can.

I’d rather take just one penny interest per year than pay $20 per month in bank fees which is the least I could expect to pay if I was going to be charmed by the delight of a higher rate of interest.

Oh and by the way.