October 27, 2020

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Savers lose money, savings account over 10 years 13 per …

Savers lose money, savings account over 10 years 13 per ...

Photo: Hollandse Hoogte / Sabine Joosten

If you had 100 euros in your savings account ten years ago, that’s only 87 euros now. The journalists Michaël Van Droogenbroeck and Ewald Pironet calculated this for their book “Investing in the second half of your life”.

The savings account has lost 13 percent in 10 years. In 20 years it is even a 20 percent loss in value. This impoverishment is due to the fact that inflation, the extension of life, was usually higher than the interest shown on the savings account. The saver then loses purchasing power. Due to the corona crisis, this will also be the case in the years to come. The European Central Bank has already announced that it will keep interest rates low for the coming years. In doing so, they are trying to encourage people to use their money to stimulate the economy and not to hoard it in a savings account.

There are many alternatives to investing money, but they involve more risks. The savings account is therefore by far the most popular way to put money away in Belgium. Experience the total amount in all Belgian savings accounts: it has increased from 100 billion euros in 2000 to 300 billion euros in 2020. A tripling in spite of the extremely low interest rates and the loss of purchasing power.