Deposit account, shares, Btp: how to use the liquidity in the current account to beat inflation
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How much do you lose by keeping the money in your checking account?
Inflation burns capital in current accounts. The race in prices, which in April accelerated by 0.5% on a monthly basis and by 8.3% on an annual basis, from +7.6% in the previous month, is eroding in terms of purchasing power the liquidity stops in the accounts. To give some practical examples, the real value of 100 euros still in the current account, if inflation is 8%, after a year is approximately 92 euros. But if that money is not invested after ten years, the real value of 46 euros, with a loss of purchasing power of 54%. The slightly lower loss for those with a 1% net interest account. In this case, inflation being equal, the real value of the 100 euro ten years later is around 51 euro. So, if you don’t invest sensibly, the damage becomes serious over time. What matters is the difference between the interest rate or investment return and inflation: if this value is negative, inflation erodes purchasing power more and more the longer the money is left in the account, explains Raffaele Zenti, co-founder and COO of Wealthype-AI (formerly Virtual B).
Read also:
– Btp, how to choose between Italy, Futura, Valore, Green and traditional: the guide to returns
May 18, 2023
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