Hope on the Horizon: Savers Anticipate an Inflation-Beating Account

How to safeguard your savings from inflation? This article provides you with the tips and tricks to invest your money wisely and achieve your financial goals.

Inflation-Savings Gap Narrows

Imagine saving your money for years, only to find out that it has lost its purchasing power due to inflation. Sounds scary, right? Well, that’s what happens when you don’t invest your savings wisely. Inflation is the rise in the prices of goods and services over time, and it can erode the value of your money. That’s why you need to save for the future, not just for the present. You need to choose investment options that can offer you higher returns than the inflation rate. But how can you find such options? Don’t worry, we have some good news for you. In this article, we will tell you how you can finally beat inflation with your savings and secure your financial goals. Read on to find out more.


  • Diversify investments for higher returns.
  • Include market-linked instruments in portfolio.
  • Add inflation-indexed investments to counter rising prices.
  • Ensure savings stand the test of time.
  • Effectively combat the effects of inflation.

Also Read: RBI hikes repo rate by 50 bps amid rising inflation forecast. Here's how it will impact your EMI and savings.

Inflation is a silent killer of your savings. It can slowly erode the value of your money over time, making it harder to reach your financial goals. But there are steps you can take to protect your investments from inflation and make them grow. By investing wisely in long term instruments, you can beat inflation and secure your financial future. So don't wait, start investing today!

What is inflation and how it affects your savings?

Inflation is the rate at which prices for services and goods are rising. Current inflation rate is 7.44% this means that prices are 7.44% higher than they were a year ago. This means that if you have INR 100 in savings today, it will only be able to buy 7.44% fewer goods and services a year from now. In other words, your savings will lose value over time due to inflation.

The interest earned on money in a savings account may not be enough to keep up with inflation. It's crucial to explore alternative sources of income that can help you stay ahead.

How can you beat inflation?

Investing in equities, ULIPs, mutual funds, fixed deposits, and small saving funds can help beat inflation. However, to form a strong investment strategy, you need to consider a few key factors. Firstly, diversify your investments to include market-linked instruments for higher returns. Secondly, add inflation-indexed investments to your portfolio to counter the effects of rising prices. By doing so, you can ensure that your savings stand the test of time and effectively combat inflation. 

Also ReadFD returns vs inflation: Here's how you can keep your purchasing power intact

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.

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