Two main disadvantages of putting your money into savings accounts compared to investing are:
- Lower returns: Savings accounts generally offer much lower interest rates than the potential returns from investments. The interest earned is often not enough to keep up with inflation, which means the purchasing power of money in savings accounts may decline over time.
- Limited growth potential: Because of the low interest rates, savings accounts do not provide significant opportunities for wealth growth compared to investing. Investments can potentially generate higher returns, especially over the long term, helping overcome inflation and build wealth.
These disadvantages mean that while savings accounts provide safety and liquidity, they may not be effective for growing wealth or maintaining purchasing power in the long run compared to investing in assets like stocks, bonds, or real estate.
