Let’s be honest if your money is just sitting in a savings account, it’s not growing… it’s shrinking.
Shocking? Not really.
While a typical savings account in India offers around 2.5%–3.5% annual interest, inflation is running at an average of 5%–6%. That means every year, the real value of your money is quietly going down.
📉 The Silent Thief: Inflation
Let’s say you have ₹1,00,000 in your savings account.
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After 1 year at 3% interest, you earn ₹3,000.
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But if inflation is at 6%, your purchasing power actually drops.
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So while you feel “safe,” you’re technically losing money.
💡 What Can You Do Instead?
Here are smarter ways to put your money to work:
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Mutual Funds (SIP): Start small, grow big. SIPs in equity mutual funds have historically delivered 10–14% returns long-term.
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Fixed Deposits with Better Rates: Explore digital FDs or NBFCs that offer higher interest than traditional banks.
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Index Funds: Low cost, low effort, long-term rewards. Perfect for busy professionals.
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Digital Gold: Want the safety of gold without the locker? Digital gold is rising in popularity.
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REITs (Real Estate Investment Trusts): Own a piece of commercial property without buying one.
📲 What About Safety?
“Higher returns = higher risk” is generally true. But diversification and knowledge are your shields.
That’s why Finmates is here to help you understand modern finance, spot opportunities, and avoid traps.
✅ Quick Action Plan:
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Keep only 2–3 months of expenses in a savings account.
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Invest the rest based on your goals and risk profile.
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Learn one new financial concept every week (start with us!).
🔚 Final Words
Savings accounts are safe but safety can come at a cost. To build wealth, you need to do more than just save.
📢 Follow Finmates to explore the how, where, and why of smart investing.
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