Keeping cash on deposit is costing you - what can you do?
A saver with €10,000 on deposit could lose €90 by next year if inflation rises as forecast
The “real” value of deposits has diminished, as the purchasing power of people’s money decreases in line with inflation. Photograph: iStock
What would you say if your local savings institution offered to take your money, put it on deposit, and give you back less when you went to cash it in in 12 months’ time?
“No thank you,” is the likely response. Yet, as inflation starts to inch up, thousands of Irish savers are actually losing money on the “real” value of their deposits. And, if forecasts are correct, they are going to lose more until deposit rates eventually start to rise.