This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!
In pretty much every country in the world now savings accounts:
- Pay less than inflation
- Have hidden risks like currency risks
- Have relative risks like losing out to assets
Interest rates will be low for years due to Covid. You are getting the worst of both worlds with savings - less returns and ironically more risk (indirect and hidden risks linked to inflation and currency).
Remember these losses to inflation also compound. Losing by 2%-3% per year is up to 40% in 12-13 years.
I think savings and investing should be used for different purposes. In the past, I had only savings account because I didn't know the difference and genuine 'investing' was something for other people than myself. It was considered as a safe way to 'keep' my money. However, now I realised that is not true and my 'investment' has been growing, not just staying as is.