Money Tips: Money lying in the bank could make you poor! Find out what the hidden loss is..

After receiving their monthly salaries, most people simply leave their savings in their savings accounts. Many individuals keep large sums—such as ₹10 lakh, ₹20 lakh, or even more—sitting in these accounts for extended periods. They believe that since the money is completely safe in the bank, there is no risk involved. However, financial experts argue that keeping excessive funds in a savings account for the long term can prove to be a losing proposition rather than a beneficial one.

**Inflation Erodes the Real Value of Your Savings**

Currently, most banks offer an annual interest rate of around 2.5% to 3% on savings accounts, whereas the average long-term inflation rate hovers between 5% and 6%. This means that while your bank balance may appear to be growing, the purchasing power of that money is steadily declining. In other words, in the future, that same amount of money will buy fewer goods or services than it does today.

Amitabh Lara, Executive Director at Anand Rathi Wealth Limited, states that savings accounts should be used for maintaining an emergency fund, not for parking large sums of money over the long term. He believes that merely preserving the principal amount is insufficient; the money's purchasing power must also be safeguarded.

**Consider the Example of ₹10 Lakh**