Cash can protect short-term plans, but long-term cash can lose real value when interest remains below inflation.
OUR METHODSources → assumptions → European context → verdict
Calculate the real return
Approximate real return equals the account rate minus inflation. A positive bank balance can still buy less each year.
Give cash a job
Emergency funds and near-term spending need stability. Long-term goals need assets with a realistic chance of outpacing inflation.
Match horizon to risk
Do not invest money required soon. Segment cash, medium-term goals and long-term investing instead of using one account for everything.
Educational illustration only—not personal financial, tax or investment advice. Tax, salary, broker and market figures change; verify current local information before acting.