Inflation is when money loses value over time and it is happening constantly.

 

Interest rates are also calculated using various algorithms and economic factors that is a mystery to many people. What we can all agree on is how low the interest rates on savings are. Most UK bank offer an interest rate of only 0.75%. That is an interest rate in a climate where inflation is 1.5%. You do not need a business qualification to realise that your money in the bank is losing value each year that you keep it locked in a high street bank. Banks are a business and their core objective is to increase profit and grow their customer base. The biggest selling point of a bank is security. Low risk equates to low returns in business circles. To see how banks, use your money, check out the rates they charge on your money when they loan to other people and businesses. What fraction do you receive when your money work in a bank? 

 

Do not be misled into thinking your back cares for you and your money. They do not. It is just business and you are statistical data. This is your money and it should be working for you and increasing your capital. It should be making you richer, not your bank executives. 

 

Get your money working hard for you rather than you work hard for it.