Why Keeping Money in Bank Account is Riskier for You


Surprised by reading the title? Unfortunately, it’s a bitter truth. Here we’re talking about the most practical experienced based scenarios which will influence you to think twice before keeping your money idle in bank account.

Top 3 reasons why people keep savings in banks

Theft Prevention:

Most important reason is to prevent theft if they are keeping money in home. Keeping money into the bank account secures account holder money. Banks are making sure to keep customers money and account related information secure and stealthy. Banks are using the highly advanced equipment to full proof the overall security. This gives account holders a trust to keep hard-earned money in bank account and seat relaxed.

Latest Feature:

Bank enables account holder to use bank’s latest features and facilities like net banking, debit card etc. If you don’t have a bank account then most probably you will not able to use the online banking feature, debit card, quick money transfer etc.

Don’t know how to manage money:

Most of the people don’t know how to manage money. They don’t believe in the investment term indeed most people are afraid to lose the money and they bothered about the market fluctuation.

“Bank account is essential to safe guard your money, but keeping money for longer period in the form of Fixed Deposit in bank accounts is riskier”

Keeping your hard-earned money in the bank account is no longer worthy and beneficial. Keeping your huge earning in the bank account is just like you’re killing your money. Keeping money in banks will least assure you that you’re not going to lose the money but it will not help you to add some value to your locked amount.

Keeping saving in bank account remains untouched and you’re not giving the chance to breath your money properly. Resultant you’re killing your money. Why Keeping Money in Bank Account is Riskier and who is going to kill your money?

If you’re not making sense out of your money and keeping it in bank accounts for longer period of time then you’re not entitled to receive any appreciation on your savings. You will receive the fix rate interest from bank but this interest is not going to help at all.

Inflation is the culprit who will be killing your saved money. Inflation will prevent growth of your money.

Inflation is rate which is going to be increase over a period of time. This inflation will ultimately raise the base price of any goods. If you’re expecting to match your current expenses in future at same earning level then you’re pushing yourself in danger.

Country wise below is the chart of the inflation rate US, Canada, UK has the stable inflation number whereas India is showing the high inflation number

Country Inflation Rate
United States 2.00%
Canada 1.60%
UK 2.50%
India 7.00%

Inflation Rate Chart

As per the Government of India inflation rate for India is hovering around 7%. If you’re Indian residents and purchasing some good which costs you around 1000 Indian Rupees after one year considering all other inflation data what will be the cost of purchased good? It will cost you around 1070 but it will cost you around 1100 rupees.

It clearly indicates your fixed deposit income will be giving you the negative return. Now let’s see how situation is going to be worse if you’re still not making mind to make any genuine investment.

So far, we just talked about the inflation who is capable enough to burn your savings. What is I say there is one more entity who is going to help Inflation to kill your money?


Yes, we’re going to talk about one more entity which will be working parallelly along with Inflation and the name of that entity is TAX. Yes, that entity name is TAX. Any income which coming under the Fixed Deposits interest falls under the income tax. This income tax is varying differently depending on your earning brackets. This bracket slides from low bracket to high bracket. High bracket taxation comes to 30.9% of tax. Whereas lowest bracket will offer the minimal negative return which will ultimately affect your core fixed deposit income.

Value of your 1000 rupees will be just 750 rupees after considering 8% of interest rate, 7-8% of the inflation rate and around 30% of tax for highest bracket.

If you consider the inflation rate addition to applicable tax on your fixed deposit earnings you wont be able to cope up with daily expenses. Most part of the population rely upon the fixed deposit income. If you’re also planning your retirement and future plan on the basis of fixed deposit then you’re just digging one big hole for yourself.

Way’s to Overcome from the Inflation

There are two proven ways you can follow to overcome from the inflation. Fixed deposit wont be the solution if you’re completely relying upon the returns which are in the form of fixed deposit interest. You need to come out of your fixed deposit mental state.

The way for the wealth creation and to overcome from inflation is either Stock Market Investment or Property Market Investment.

Stock Market Investment:

Stock market is the most effective and proven way to earn wealth and get out of the inflation. Stock market can help you to overcome from inflation disease. Stock market investment will only work if you know enough information and knowledge about the market. Without learning if you try to jump in stock market then it will be just like without use of life saver and learning you’re jumping into sea then the chances of losing life are certain.  You need to gain the knowledge at first pace to invest in stock market.

Investment in Property Market

Investing in real property is the superior way of earning big frame money. Property is purchased with intention of earning returns on the investment. This return can be either by selling the property or by renting out. Only the drawback with property investment is you need to have a huge money in your account to be able to purchase it.

“Person who is involved into 9 hours of job can’t afford big investment. stock market is the good option for working professionals”.

Why to Invest in Stock?

  • Stock investment is the smart investment
  • You can invest in market in variety of forms including stock, mutual fund, currency, commodity etc.
  • Stock market price are transparent
  • You can buy and sell stock at anytime this will not the case with property market
  • You can start investment with low amount 1000 Rs/- but this is not case with property market investment.
  • You can start investment from any corner of the world via mobile, tab, laptop you don’t need to location specific.
  • Holding right stock at right time for good period of time can help you to grow your money.


Historically it is proven that stock market gives very good return as compare to choosing bank’s fixed deposit as an investment option. Stock market is the good way of wealth creation. If you’re holding right stock, at right time and giving appropriate time then you will see the appreciation in your investment. Sensible investment will give you return of around 25% annually which will be far better than 7% to 8% of return on your fixed deposits.


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