Fat Savings Account? You're Losing Money. Invest for Real Growth.

• Savings accounts offer low returns (around 4%) which can lead to a real-terms loss of value due to inflation, unlike market investments.
• Financial advisers suggest investing excess funds in liquid/ultra-short duration mutual funds, or arbitrage, hybrid, and equity funds for better growth.
• Keeping only 3-6 months of living expenses in a savings account is recommended for emergencies, with surplus funds directed to growth-oriented investments.
• Auto-sweep facilities link savings to FDs, automatically moving excess funds for higher interest (up to 7%) while maintaining instant access.
• Consolidating accounts simplifies management; DICGC insures up to Rs 5 lakh per depositor per bank, advising to keep balances below this or spread them.

Why It Matters: Idle savings lose value; invest wisely for growth.