Inflation means an inevitable rise in the prices of goods and services that silently eats the purchasing capacity of your savings over time. Hence, the challenge is not only to save money but also to enable those savings to grow enough to beat inflation. However, seeking higher returns often entails bigger risks; such a scenario is not suitable for those prioritizing financial security.

The good news is that you can beat inflation without taking on too much risk by using smart saving tips and picking the right financial products.

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Why Inflation Matters for Savers

If your money isn’t growing faster than inflation, you’re losing buying power. For instance, if inflation is at 4% a year but your savings are just earning 2%, your money is actually worth less over time.

Regular savings accounts are pretty safe, but they usually have interest rates that don’t keep up with inflation. So, if you’re looking to keep your money safe from losing value, they’re not the best option.

High Interest Term Deposits: A Reliable Tool

A simple way to deal with inflation without taking big risks is to use high interest term deposits. These accounts keep your money tied up for a while and pay a fixed rate that’s usually better than regular savings accounts.

With interest rates going up around the world, term deposits are looking pretty appealing right now. Here’s what they offer:

  • Your money is safe and usually backed by government guarantees up to a certain limit.
  • You’ll know exactly how much interest you’ll get.
  • They typically have better rates than regular accounts, especially from banks that are trying hard to attract deposits.

Finding Competitive Rates with Digital Banks

Not all term deposits give you the same returns. While traditional banks are convenient, they usually offer lower interest rates. That’s where digital banks like Judo bank come into play.

Judo.bank is Australian digital bank offering fair competitive term deposit rates. They prefer to provide value and use efficient online systems to be able to provide better rates without compromising on safety or service.

Setting up a term deposit with Judo bank is straightforward, and their digital platform makes it easy to manage your savings – no need to visit a branch.

Other Low-Risk Strategies to Consider

If you’re looking to safeguard your savings from inflation without risking too much, here are a few options besides term deposits:

  • High-Interest Savings Accounts – Some online banks have good rates on savings accounts, though they might not be as high as term deposits.
  • Government Bonds – These are pretty safe and usually pay a steady interest that can outpace inflation.
  • Diversified Low-Risk Funds – Some managed funds focus on stable assets that give you moderate returns above inflation.

Keep an Eye on Inflation Trends

Inflation rates go up and down, so it’s a good idea to check on your saving plan now and then. When inflation rises, getting a decent term deposit rate can help keep your money from losing its value.

Don’t just roll over your deposits without looking at the current rates. Always compare your options, and digital banks like Judo bank are a great spot to kick things off.