Archive · 24 Jul 2025
Expert: Salary Accounts Are Silently Losing Value Due to Inflation
Imagine your money is like a plant, and your salary account is a pot where it grows.
But, if you only have a regular savings account, it's like the plant is not getting enough sunshine, and inflation is like a hungry bug that eats your plant little by little.
A financial expert says that your money can lose its value if it sits in a low-interest account.
The best way is to have only a small amount of money in your regular account.
Then move the extra money to other places, like funds that can help your money grow faster.
This way, your money can work harder for you, and you'll be able to buy more things in the future!
Expert warns that salary accounts can lose value due to inflation and low interest rates.
Salary accounts typically yield 3-3.5% interest annually while inflation may be 6-7%.
Money in savings accounts can depreciate, leading to a loss of purchasing power.
The recommended solution involves transferring surplus funds to better-yielding options.
Automation is key: set up automatic transfers to protect income from inflation and leverage compounding returns.
- Who
- Chartered Accountant Abhishek Walia.
- What
- Financial expert discusses how inflation and low interest rates in salary accounts can lead to a loss of purchasing power.
- When
- The conversation is timely, highlighting the effects of inflation.
- Where
- Information is relevant to individuals with salary accounts.
- Why
- To educate salaried individuals on smarter money management.
Current Financial Strategy
Proposed Financial Strategy
Amount in Savings Accounts
Current Financial Strategy
Keeping most or all of your savings in a standard savings account.
Proposed Financial Strategy
Using savings accounts for only 1-2 months of expenses.
- Expert
- Chartered Accountant Abhishek Walia
- Savings Account Interest Rate
- 3-3.5%
- Inflation Rate
- 6-7%
- Suggested Action
- Transfer excess funds to better-yielding options
- Options
- Liquid mutual funds, index funds