You’re losing money in your sleep without realising it. Here’s why.

Before we lift the lid on why Savings accounts are riskier than you might think, it’s important to clarify this is not financial advice; I’m sharing personal views for information and entertainment purposes only.

Savings accounts. The traditional safe haven for your money to slowly stew away until you’re ready to access it, right? Hmm, not so fast.

In this blog I’m not saying we should ditch the Savings account. Far from it; I believe a Savings account has its place as part of a balanced portfolio. But the harsh reality is that inflation is eating up the value of innocent people’s savings and many don’t realise it. So, there are three points I’m making:

1. Inflation and its impact on savings is underappreciated. We get swept up in the fact these are “low risk” and Government-backed options so overlook inflation as a valid form of risk we need to manage, just like we do with higher risk options.

2. As a result of point one, we often under-research Savings accounts. Just because something is low risk doesn’t mean we shouldn’t research it fully. Getting the absolute best return on your Savings account is the only way to mitigate the risk of inflation gobbling up your purchasing power. If you don’t do extensive research and shop around then you’re doing…