Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Savings Aren’t Safe Anymore! Here’s What To Do Instead…
Ruby Layram
3rd Nov 2025
Remember when your parents told you to “put some money aside for a rainy day”? That was good advice, back then.
But today? Keeping your money parked in a savings account might just be the riskiest thing you can do! (aside from the obvious online scams!)
In my opinion, savings accounts aren’t safe. Or at least, not in the way that they used to be. And if you’re going to take a bit of risk, your money may as well as be working for you!
The Hidden Risk of “Playing It Safe”
It feels safe to save; we all like the comfort of seeing a tidy number in the bank. But what your bank statement doesn’t show you is the silent thief eating away at your money, inflation.
Even with interest rates higher than a few years ago, the maths often doesn’t add up.
Let’s say you’re earning 4% interest on your savings. But if inflation is running at 5%, you’re still losing 1% of your buying power every year.
So your “safe” savings? They’re shrinking, just quietly.
Why the Old Rules Don’t Work Anymore
The financial world has changed.
- Inflation erodes savings faster than you think.
- Cash returns rarely beat the cost of living.
- And the longer you leave your money idle, the less it can work for you.
The truth is, saving alone isn’t enough to build wealth anymore. You have to make your money grow, and that means investing.
Why Investing Is Safer Than You Think
Many people still think investing is “gambling.”
But smart investing is not about luck; it’s about strategy and time.
Here’s why it works:
- Diversification: Instead of relying on one bank account, you spread your money across companies, sectors, and even countries.
- Compounding returns: Your money earns returns… and those returns start earning returns too.
- Protection from inflation: Over the long run, the stock market has consistently outpaced inflation, something savings accounts can’t claim.
When you invest wisely, you give your money a chance to grow faster than prices rise.
How to Start Investing with Confidence
You don’t need to be a financial expert to start, just a plan and a little patience.
Here’s a quick roadmap:
- Start small: You can begin investing with as little as £25 a month.
- Go long-term: Think in years, not weeks. The market rewards patience.
- Diversify: Use ETFs or index funds to spread your risk automatically.
- Stay consistent: Invest regularly, regardless of market noise.
- Keep learning: Follow trusted investing insights to understand what’s happening behind the headlines.
Final Thoughts
Keeping your money in a savings account might feel safe, but in today’s economy, doing nothing is the new risk.
By learning how to invest smartly, you’re not just chasing returns, you’re protecting your future self from inflation, uncertainty, and lost opportunity.
So don’t let your money sit still while everything else gets more expensive.
Are you interested in learning more about investing? Why not sign up to the MoneyMagpie bi-weekly Investing Newsletter? It’s free and you can unsubscribe at any time if you find it isn’t for you.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk
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