Savings Account vs. Inflation: Why Your Money Isn't Safe, According to a CA

• Many middle-class individuals keep all savings in bank accounts, fearing investment risks.
• CA Abhishek Walia highlights that inflation (around 6% in India) erodes savings account value, which typically offers only 2-3% interest.
• Money in a savings account loses purchasing power annually due to inflation, making it a silent risk.
• Walia advised a client to keep an emergency fund and invest the rest in low-risk debt and index funds.
• Smart investments, even low-risk ones, can protect against inflation and generate better returns than a savings account.

Why It Matters: Keeping all money in a savings account is risky due to inflation; smart, low-risk investments are crucial.