Your “Safe” Savings Account Is Costing You a Fortune

Think your money is safe sitting in a savings account? Think again.

Right now, high‑street savings accounts pay around 1 % interest. Meanwhile, inflation

is running between 2.5 % and 4 %. Let’s split the difference and call it 3 %.

Do the maths:

• £100,000 parked in a bank earning 1 % while prices rise at 3 % loses 2 % of its

purchasing power each year.

• After 10 years, that £100,000 is effectively worth £82,000.

• Leave it there for another decade and it drops to £67,000.

In other words, you’re losing money every single day your cash sits in a “safe” account.

It’s time we redefine what savings means. “Saving” should be about preserving and

growing your purchasing power, not watching it erode.

Investing wisely, through diversified portfolios, inflation‑linked bonds or property, can

protect your money and help it outpace inflation. Yes, markets fluctuate, but over the

long term they build wealth. A stagnant savings account does not.

Stop mistaking inactivity for safety. If your six‑figure nest egg is gathering dust at the

bank, you’re silently surrendering tens of thousands of pounds.