Money Just Sitting In The Bank? 

28 Jun, 2024
Money Just Sitting In The Bank? 

Are you among the many people who have their money sitting in the bank, earning little to no interest, while inflation eats away at it? You’re not alone. Many individuals face this problem of not being able to see their savings grow. In this blog post, we will explore smarter alternatives for your money instead of just letting it sit in your deposit savings account. 


Imagine having €100,000 in your bank account with no interest being earned. If annually inflation is at, say, 3% then you are potentially losing up to €3,000 because nothing is happening to your money. Then what can be done to make sure that your money works better to help beat inflation? The best answer here is investing. 


However, before starting off on investing you must consider some essentials.  


First and foremost, make sure that you keep some money aside for emergencies such as unforeseen expenses or even losing a job. Your emergency fund should be able to cater for at least three months’ worth of living costs. 


Next think about what you want your money to do over the next five years. Do you have something expensive coming up? like a wedding or buying a home? Make sure to have enough cash set aside in an easily accessible bank account, so that when required it can be quickly withdrawn. 


Now let’s discuss the money that you don’t need immediately, especially anything more than five years ahead of us. This is where investing comes into play and by doing such, one has the opportunity of growing his or her investment and potentially making higher returns, than if it was left sitting dormant at the bank. 


There are several types of investments such as stocks, bonds and real estate. Every type comes with different levels of risk and reward- always bear this fact in mind when thinking about the amount of risk which feels comfortable with your goals. 


If you’re new to investing and not sure where to start, it is important to talk to a financial advisor. Here at askpaul, we will come up with a personalised plan and advice that suits your particular circumstances, taking into account the level of risk you’re comfortable with while giving you advice and guidance along the way. 


So if the money sitting in your bank account feels like it’s not doing anything, maybe it’s time to think about investing. Through smart money choices, you can make your funds go further and achieve your long-term financial goals. For more assistance on investing, please do not hesitate to contact us. We are here to help you maximise what you have and develop a secure financial future. 

 Saving & Investing compared 

Quick access to cash 

A savings or deposit account offers quick access to your money as and when you need it. However, some accounts may have limitations on the amount, frequency, or notice required for withdrawals. 


Typically used for long-term objectives 

 Investing is ideal for achieving medium to long-term goals like funding a child’s education or preparing for retirement. You may access your funds during the investment period however you are potentially subject to charges and penalties depending on the fund. 


Minimal risk involved 

 Your money in a savings account are safeguarded under the deposit guarantee scheme, albeit subject to certain limits. 


Delayed access to invested funds 

 Investing may tie up your money for a specific duration or require additional time to access compared to a savings account. 


Earns interest  

Saving money in a deposit account allows you to earn interest, although the returns may be lower compared to investment options. 


Always carries risk 

 Investing involves risk, with no guarantee of returns, and there’s a possibility of losing some or all of your invested funds. 


Low potential returns 

 Presently, interest rates are quite low, and even over extended fixed rate periods, returns from deposits are typically lower than other investment avenues. 


Potential for higher earnings 

 Investments offer the potential for higher returns than savings accounts, providing an opportunity to grow your wealth over time. 









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