Keep your own money into a checking account it is, somewhat safe but not a convenient choice. This is because savings are eroded over time, mainly due toinflation and of Bank charges. Well, according to a calculation by the experts, in 5 years 1,000 euros are worth only 180 euros. So, for the money in the bank there is a depreciation of about 80%. At the same time, making the calculation on higher figures, in the same period of time, 10,000 euros come to be worth only 8,181, with a depreciation of about 20%.
All this, as mentioned, due to the expenses due to the bank for keeping the account, taxes and the loss of purchasing power caused by inflation. With respect to this, the conditions for current accounts offered by the online banks they are better but the situation remains daunting. We have seen in a nutshell, why it is not convenient to keep your money in your checking account. Now let’s see what, instead, it is advisable to do.
What to do as an alternative to keeping the money in the account
However, the basic advice is to take advantage of the current account tool only to have ready-to-use liquidity. For the rest, attention can be paid to safe investments. An increasingly popular type of investment is represented by crowdfunding real estate.
For example, some companies allow you to register in seconds and lend money directly to the most innovative companies that invest in the sector, receiving interest every month. Another investment in vogue is that of cryptovalute. Therefore, any safe investment is advisable compared to letting money rot in the current account, where it is gradually sucked up by ordinary expenses. So, in summary, to the question: “why is it not convenient to keep your money in the current account?”, We answer as follows.
First of all, we provide disadvantage elements that translate into concrete numbers, to be calculated negatively on the amounts held in the account. These elements are: 1) the annual stamp duty of 34.20 euros; 2) zero interest rates; 3) an average cost of keeping the account of 145 euros per year; 4) average annual inflation of 2%. So, it follows that it is much more convenient to make safe investments or, in any case, to use the money in something profitable.
Deepening
Who compensates if the money disappears from the current account?
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