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  • Writer's pictureJoe Woodhouse

The Riskiest Place to Keep Your Money

What if I told you I knew an investment you could make, where you are guaranteed to lose money, guaranteed? 


Where you can invest £10,000 today and in 10 years you’ll have around £7,800 left.  

Would you take me up on the offer? No, of course you wouldn't.

So why are you keeping all your money in the bank?


Cash. I.e. The bank is the worst place to put your money. If you put £10,000 in a bank account 10 years ago it would have hardly moved, if at all, because interest rates are so low.

Yet if you take inflation into account the actual spending power of your £10,000 a decade on would be less than £7,800 today.  


The UK government and most developed countries target around 2.5% inflation each year. That means the price of your coffee, water, insurance, petrol, food - everything.

On average, it will get 2.5% more expensive every 12 months. Therefore your money in the bank, every single year, will be worth less.   


Think about that. You put money in the bank because it’s safe and you don't want to take any risk with it? That is the riskiest thing you can do. The only thing that’s guaranteed if you leave your savings in the bank is that it will lose money. 


It seems simple and obvious when you say it out loud, and of course i'm not talking about your emergency pot - that has to stay somewhere with quick and easy access. But I'm talking about that "savings" account you just chip your money into, the one that sits underneath your current account on your online banking? That's the one that is losing money and all that hard work you are putting into saving is going down the drain.


And that, is the riskiest place to keep your cash.


Thanks for reading.



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