Is Your Savings Account Costing You Money? Here’s What Financial Advisor Said | Economy News
New Delhi: Most Indians believe that keeping money in a savings account or fixed deposit is the safest way to secure their future. It feels responsible or even eise. But financial advisor Lovish Anand has sparked a much-needed wake-up call. In a recent LinkedIn post titled “Your Savings Account Is Quietly Robbing You,” he explains how this traditional habit could actually be shrinking your wealth instead of growing it.
Lovish Anand points out that many Indians still depend on traditional options like savings accounts, fixed deposits, or LIC policies to manage their finances. However, he warns that these methods often fail to beat inflation and in the long run, they could be quietly eating away at your purchasing power.
The gap between interest rates and inflation is wider than most people realize. While SBI offers just 2.5 per cent interest on savings accounts, inflation continues to hover around 5–6 per cent. As Lovish Anand puts it, “SBI’s latest interest rate? Just 2.5 per cent. Inflation? Hovering at 5 to 6 per cent. Let that sink in.”
The effect of this gap is more serious than it seems. Even if you’ve saved around say, Rs 10 lakh — you could still be losing money each year in real terms. Anand compares fixed deposits, LICs, and savings accounts to “safety nets” that can sometimes be “leaky,” stressing that while they may feel secure, they don’t actually help your wealth grow.
Anand urges people to rethink old-school money habits that no longer serve long-term financial goals. “Fixed deposits, LICs, and savings accounts aren’t wealth creators,” he explains. “They’re safety nets. And sometimes… they’re leaky.” He adds a powerful reminder: “If your financial plan still revolves around these, you’re not just playing it safe, you’re playing it small.”
To avoid losing value on your savings, Anand recommends making smarter investment choices based on your comfort with risk. He points to options like index funds, mutual funds, hybrid funds, and arbitrage funds as better alternatives. “These are low-cost or professionally managed options that can help your money grow instead of gathering dust,” he explains.
Anand’s message taps into a growing shift toward smarter, growth-focused ways of investing — ones that offer better returns than traditional savings methods. “Your money deserves to grow,” he says, warning against letting it “sit idle while inflation chips away at its value.” By choosing modern financial tools that match your risk level, you can do more than just protect your savings; you can grow them in a way that keeps up with inflation and brings you closer to your financial goals.
Anand’s insights push savers to take a closer look at their financial plans and adjust them to today’s changing economic landscape so their money actually works toward building a more secure future.
