Savers are losing purchasing power quietly!

[CTO114]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

[Oluwa-btc]

Purchasing power is how much commodities your money can buy.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Yes, nobody said saving is bad,but the value attached is no longer fetching profitable because there's high time inflation.The more inflation rises,the more it affects the value of the normal money hidden in accounts known as "Savings."Many of us don't notice this early,only to find out the whole savings strategy becomes destructive to finances.All of a sudden,the savings strategy is no longer viable for accumulating wealth.

[Mhizlove]

Okay I will say this is why financial awareness is very important because keeping money save or putting money in the bank always don't actually mean that it will grow or accumulate, if you don't think beyound saving in the future it will work against you. If you really want to protect the value you will have to need strategy and planning because for me you see money do move with the rising of commodities, because planning ahead of time is very important and if you don't do that without you noticing you will feel that you're safe today but you will regret it tomorrow or in the future if you don't plan well

[hyudien]

Alright this is another post about the uselessness of saving in a bank. You give important points but basically it's commonly talked about, of course there are still many people who don't realize this negative side, I'm glad there are still people who remind them. Again for me personally saving is important but only for short term needs, because after all we are still tied to the operation of the fiat system, but to save your wealth, investing in assets that have inflation resistance is something that must be carried out from now on. Thinking long term is something that must be done in this day and age.

[7juju]

Keeping money idle in the bank is never a smart decision especially for someone who's still still coming up ladder. The money in the bank won't give you anything reasonable, the best way to save money and multiply it and preserve the value is by investing it in something that will be returning profits to you. Even the bank you are taking your money to, they are making use of the money by loaning them out or investing it in something that will generate more money for them. So why give bank owners capitals to fund their business and you receive less from it when you can invest it on your own and make something bigger from the investments.

[Akbarkoe]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Inflation is a thief in the daytime, without anyone knowing it and without anyone realizing it, once they know that the saver's money is being stolen they also cannot do anything because the fiat system is doing it, therefore those who are already aware of it will look for places to invest in order to maintain the value of their money over time, therefore every year Gold has increased in price, bitcoin is loyal every 4 years also increases printing new ATH and land or other property prices increase, of course this is the reason why these assets increase in price.

In the book Rich Dad Poor Dad by Robert Kiyosaki even describes it as “Robbers”

[SUPERSAIAN]

In times of high inflation, simply hoarding and saving your fiat money is pure naivety, that's a fact. If you're saving to invest, that's a good approach. Otherwise, you're not spending your money, you're being stingy, and you're losing money. Instead, just spend it! But the problem is, some people don't realize how much their money is losing value. In my country, people generally invest in gold many people made good profits from gold during the recent price surge.

[Orpichukwu]

Saving money in the bank is not what devalues the money; it's not only the money that's being saved in the bank that loses value, but fiat in general. Purchasing power is reducing from time to time, and inflation is hitting so hard.

Investing our money in something is good, but we need to be mindful of the type of investment we make, as some can end up leading us into the fastest way of losing. Save what we want to use after a short period, and whatever we want to reserve for the future is best being put into something that can store value and at the same time increase in value.

[abhiseshakana]

Personaly and consistenly i say that bank is bad and nasty, bank is scraper instrument to dig up wealth from people on the bottom of pyramid to the population on top of pyramid. Society must understand that Bank get profit from all kind of credit they sell, transaction fee, administration cost, fines & penalties. Funny thing bank encourage saving, not because it is their main purpose but society saving big or small is cheapest capital foe bank to give credit, with our money bank has liquidity & cheap capital. The bigger our saving in bank the more bigger bank can sell credit, from interset spread, they already get margin.

We can see clearly this phenomena on urban family economy, all more expensive for rent, education fee, transportation, food, lifestyle and instalment and bank playing to be hero with solution if it's not enough, they'll help with credit, this practice cuased social pattern such as wage stagnation, inflation increase, normalization of debt and saving is financial safety illusion. Many people shout up and ignore especially who have asset who benefited by inflation. So system structurally create rich people become richer and woking class become more fragile, using inflation. i think personaly, each people can suppress inflation if everybody financially literated.

[DYOR+BTC]

Keeping money idle in the bank is never a smart decision especially for someone who's still still coming up ladder. The money in the bank won't give you anything reasonable, the best way to save money and multiply it and preserve the value is by investing it in something that will be returning profits to you. Even the bank you are taking your money to, they are making use of the money by loaning them out or investing it in something that will generate more money for them. So why give bank owners capitals to fund their business and you receive less from it when you can invest it on your own and make something bigger from the investments.

Yes the money saved in our traditional banking system never adds money equivalent to what it is supposed to be when it is invested, at times we believe saving money in our banks helps, without knowing saving is necessary when one dont have any where to invest in or we are saving to start up something. To me I believe in Constant investment be it big or small instead of saving the money where it can never give any benefit know matterhow long it is saved. I am not of the  saving is wrong but constant investment should be adopted aver saving for a long time that nothing come out

[uchegod-21]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

It depends on how and where you save your money. If you save your money in a low/zero interest savings account, you will not enjoy the benefits of your savings because inflation will reduce the value of your savings. Imagine an inflation rate at 10% and your savings is giving you only 2% interest. This is very obvious that your purchasing power will be greatly affected.

The bank is not the best place to save. Save in treasury instruments, in precious stones like gold and importantly for me is bitcoin. You can save in land as it is proven to appreciate over time. Save in such a way that you can become rich when you withdraw your savings. Saving fiat in banks won't guarantee that.

[passwordnow]

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

That is true, they don't calculate it with how much is the inflation rate on that year. And all they like is the shiny balance account they have on their accounts. But this only means that everyone has their own preference in money management. If they don't like to invest, they might be into saving. Yet, if they start learning about it, they'll have an idea that saving is just going to lose the value of their money in the long run.

[TheUltraElite]

Savings plus investing is the way to go, only savings will depreciate in value over time if given the proper time. But truly what will the poor or middle class people do anyway? I suggest take a bit of risk and investing in assets that they are comfortable with. The ones who are into crypto are ok for now, but they should continue to accumulate.

Savings should not be downplayed though. The emergency funds will come from savings only. It has an important role and hence division of income into savings and investment is the key.

[philipma1957]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Well on oct 6 2025

126k got 1 btc

126k gets over 1.8 btc

So hodl cash for 130 days  and buy btc now you got 1.8 btc

Much better to hold the cash then btc from Oct  6 to Feb 15th

Just saying.

[Alpen]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

You’ve touched on a very important topic. Bank interest rates are almost always lower than inflation. Banks essentially profit off their depositors by lending that same money out at much higher credit rates.

This is why banks could face a massive outflow of deposits if the Clarity Act passes in the US. This legislation would legalize stablecoin staking, and even the lowest yields on USDT or USDC are 2–3 times higher than what US banks offer.

Personally, I keep my savings in a Top-10 crypto asset. I use the Cryptomus platform because it offers the highest yields. I even finished last year in the green despite the market dip, earning more on the price action than a bank could offer me in a lifetime.

In terms of smart investing, Africa is leading the way. Many there have no access to traditional banking, so they’ve embraced crypto. They manage to save pennies that turn into tens of dollars. We only suffer from low interest rates because we continue to let banks profit off us.

[Spaceman1000$]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

That is why it is advisable to always invest your money instead of keeping it the bank, where it will be eaten up by inflation. Although there are some banks that do give you an option of fixed savings, where your money can yield a higher amount of interest rate if you leave it for longer period of time, some banks can go as high as 15% interest rate, depending on the package you decide to choose. So can you always approach the bank to for such kind of investment, instead of just keeping your cash idle in bank account where it will be eaten up by inflation, although I understand that such options comes with stricked compliance.

[Emjay24]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

Inflation is always doing its thing to fiat and even stable currencies since every devaluation of the pegged currency affects the value of the stable coin, lately my country currency strengthened against the dollar and the funds I kept in USDT lost considerable value upon converting. it is safe to say that any funds saved in fiat or its equivalent is always subject to such devaluation

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

It is stolen, not in quantity but in value. The worth of your money is slowly stolen, that is still robbery although it is done by the government, so it is considered legal.

[Taskford]

Savings plus investing is the way to go, only savings will depreciate in value over time if given the proper time. But truly what will the poor or middle class people do anyway? I suggest take a bit of risk and investing in assets that they are comfortable with. The ones who are into crypto are ok for now, but they should continue to accumulate.

Savings should not be downplayed though. The emergency funds will come from savings only. It has an important role and henc division of income into savings and investment is the key.

Maybe depends on their purpose since if the intention of the user is to just hide their money and don't have plans with it, I guess that they might just lost on inflation. But if their intention is to save some money for a while to fund something that they need or even use it on their future investment I think this is fine.

People need to explore lot of things including those what they think risky, since somehow this could give them learnings and also profit in future. If they stay on their comfort zone for sure nothing will happen to them. That's why explore and don't let your money sleep on your bank account is important, also they must take proper precaution on programs they are choosing and better stay away on scam so they can really roll out and get more chance to get a return on where they try to invest their money.

[asriloni]

It's the reason why keeping our money in your bank account is a terrible idea. They basically lending our money with very high interest, but pay us back small interest. That's why they're getting rich while we're losing our purchasing power due to inflation.

So converting your money into the commodity that can hedge against inflation is best. Gold or Bitcoin is the best thing when it comes to fight the inflation. I know the risk is high due to the volatility. yet saving our money in bank is also involving the same risk if the institution goes bankrupt. So both of things possess the same risk.

No doubt many people are starting to aware saving their money in the bank ain't solution. . So they're FOMO to buy gold, btc or another investment instrument. They're hoping it can work to hedge against the inflation by doing nothing.

[Free Market Capitalist]

I think what the OP says is nothing new to forum members who are interested in economics.

It's the reason why keeping our money in your bank account is a terrible idea. They basically lending our money with very high interest, but pay us back small interest. That's why they're getting rich while we're losing our purchasing power due to inflation.

Any sensible personal finance plan involves having at least three months' worth of expenses in cash or in the bank. That's not a bad idea, quite the contrary. The purchasing power you lose by having those cash reserves can be considered the cost of insurance.

So converting your money into the commodity that can hedge against inflation is best. Gold or Bitcoin is the best thing when it comes to fight the inflation. I know the risk is high due to the volatility. yet saving our money in bank is also involving the same risk if the institution goes bankrupt. So both of things possess the same risk.

There are alternatives between leaving your money in the bank for a low interest and investing it in Bitcoin. You can look into high-yield savings accounts or money market funds. Index funds are also an option. They are volatile, but less so than Bitcoin.