I’m better off saving in my bank account. I don’t want the exposure of risk but hear me out on why Investing is better than saving?

This is a sentence I have heard from almost all of the people around me. They just out of nowhere thinks that Saving Account is the safest possible way to park the money.

In my opinion, your money is even at greater risk!

Yes, you read that right, RISK!

Saving the money in the bank account exposes you to even more risk than you can ever think of.

How Am I Risking My Money While Keeping It In Bank Account? Why Investing is better than saving?

You might be like, that this guy is crazy… How can one get exposed to risk while keeping their own hard-earned money in the bank?

Unfortunately, the answer is Inflation.

Ever heard of this term?

In short words, it is an increase in prices and decreasing purchase value of the money. According to IndianExpress, the inflation rate of India is 4.06%.

However, if you see other developed countries like the United States has an inflation rate of just 0.62%.

For example, you saved 1 Crore Rupees for the future (10-50 years). Let’s predict the value of this 1 Crore rupees over the future with a maximum rate and this reduction of the value is the RISK you’re exposed to.

According to ScripBox, at an inflation rate of 7%, your 1 Crore in the future will be as follows

From the above table, you get an idea of where your saved 1 Crore rupees will stand in the future, i.e,

  • 1 Crore Rupees in 2031 will be worth only 50 Lakhs Rupees
  • 1 Crore Rupees in 2036 will be worth only 36 Lakhs Rupees
  • 1 Crore Rupees in 2046 will be worth only 18 Lakhs Rupees
  • 1 Crore Rupees in 2071 will be worth just a mere 13 Lakhs Rupees

I hope you now understand that Inflation is your Risk.

How To Avoid Inflation?

To avoid the inflation, you have to remain invested and grow your money over time. People in this world do the following things to beat the inflation rates.

  • Fixed Deposit
    It is as same as useless, but you’re not exposed to any type of risk. This is a good option to grow little money out of your money without the risk of losing any money. However, a fixed deposit pays an interest of just 4%-6% maximum while inflation can grow higher.

  • Investing In Mutual Funds
    Another great idea of lesser risk is to park your money in this pool of funds where great fund managers manage your money to lower your risk but gives much higher returns than your average Fixed Deposits. Upstox offers Mutual Funds where you can invest every month and gain returns of around 13-18%.

  • Investing In Bonds & Debentures
    This is again another method of investing without any risk but returns are much more than the usual Fixed Deposits. There are a lot of government bonds, public provident funds in India in which you invest and get good returns. In this case, GoldenPi, India’s #1 Platform for Online Bonds can help you get started.

  • Investing Directly In Stock Market or Equity
    This is very risky however, you gain a hefty amount of returns as well. Returns on direct equity can range between (13%-30%) but you’re exposed to much more risk than usual. You can lose money as well.

    However, you can still invest your money into top-growing companies by studying them yourself and gain good returns. Open your DEMAT Account with Zerodha to start investing right away.


By this time, I am sure you know why investing is much better than saving money in your bank account. You’re clearly exposed to inflation especially in India at a high rate which makes your value of money much lesser as year passed by.

However, with investing your money into the Bonds can certainly give you better returns over the Fixed Deposits and much more better in Mutual Funds & Equity but with slight risk exposure.

Overall, its your money and you know what to do and what is right with you. Hope you like the advice and more posts like this, stay tuned with us. Put down your Email and you’ll get our new posts right away on your email.