Negligible returns from a savings account cannot beat inflation. (Photo source: Unsplash) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Many Indians tend to keep their money idle in a savings account, prioritising safety and liquidity over potential growth. The ability to withdraw funds at any time offers peace of mind, but this comfort comes at a cost.

The downside is that standard savings account returns often fail to keep pace with inflation, gradually eroding the value of your money. While savings accounts typically offer interest rates of around 2.5–3% per annum, inflation usually hovers near 6%. As a result, keeping a large amount in a savings account can undermine long-term wealth creation.

If you have a sizable sum—say Rs 2 lakh—lying idle in your savings acco

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