Keeping your money in a savings account is always the safest option.

A savings account is generally considered a low-risk place to keep your money. Your balance doesn't normally jump up and down like the price of a stock, and you can usually access your money when you need it.

But there is another risk that is easy to overlook: inflation.

Imagine you put ₹10,000 into a savings account and earn 3% interest. After a year, you would have ₹10,300.

Sounds good, right?

Now imagine that prices across the economy have risen by 6% during that same year. The amount in your account has increased, but the things you can buy with it have become more expensive. In other words, your money has lost some purchasing power.

This doesn't mean savings accounts are bad. They can be very useful for emergency funds, short-term goals and money you need to access easily.

The point is that “safe” can mean different things. A savings account may protect you from large investment losses, but it doesn't necessarily protect your money from losing value over time.