The Globe and Mail reports in its Thursday, Oct. 31, edition that people are putting too much trust in cash these days. The Globe's Rob Carrick writes that CIBC reports that there is about $250-billion in extra savings held in Guaranteed Investment Certificates and investment products like money market funds, which are used by investors to securely park their cash. While interest rates have been declining, CIBC found that this amount has not changed significantly. In fact, the trend of moving money into these safe options is on the rise. McVay and Associates says bank account balances have been increasing since April, and GIC balances have risen by 15 per cent this year. Although this growth is down from 36.9 per cent last year, it remains strong. Mr. Carrick says cash is suitable mainly for short-term savings goals and emergency funds, where a modest risk-free return is preferable to the potential for higher returns with a significant chance of losing money. If you keep money for longer-term goals such as retirement in cash, recognize the cost now and in future. Low rates of return mean you either have to contribute more to your savings to achieve your goals, or accept having less money in the end.