Many people assume that parking their money in a savings account is the safest way to protect it. But according to CA Abhishek Walia, this common habit could silently erode wealth over time.
“With savings interest rates at 2–3% and inflation around 6%, money sitting idle is losing value every year,” Walia explained.
He shared a case of a client who kept Rs 10 lakh in a savings account, thinking it was safe. Walia advised a small but effective shift: Rs 3 lakh for emergencies and Rs 7 lakh in short-term debt and index funds. Within a year, the client earned nearly Rs 60,000 more, without taking major risks.
“Doing nothing feels safe, but it’s the riskiest choice. Inflation doesn’t wait,” Walia said.
The takeaway: even low-risk investment options can help grow your money and protect it from inflation, unlike leaving it idle in a savings account.
