Attention, whoever leaves 10 thousand in the account for 5 years loses more than 1000 euros. The holder of a bank account often does not know that the total amount of savings has decreased over the years. And even more ignores the fact that you lose important sums of money the longer the time you leave the money in storage. The savings that you keep in a safe or in a hidden place in your home at least do not involve management costs. The taxpayer who instead leaves the cash on deposit for years on the account must estimate significant losses.
In the article “5 reasons to keep little money in your checking account”The reader will find valuable advice to avoid incurring unnecessary costs. Now let’s get into the specifics of the expenses that the saver incurs and of which he is not always aware. We repeat it to you: attention, whoever leaves 10 thousand of it for 5 years loses more than 1000 euros. This statement does not arise from the desire to sow panic or to make psychological terrorism against the taxpayer. The losses on the money that the account holder leaves on deposit are real and are the result of specific calculations.
Attention, whoever leaves 10 thousand in the account for 5 years loses more than 1000 euros
Let’s say the case of an average saver who has in stock an amount of money equal to 10 thousand euros. If he does not use cash and does not invest it, he will suffer an 18% loss. On a deposit of 10 thousand euros 18% of loss is equivalent to 1,800 euros. The loss percentage equal to 18% derives from the sum of the management and inflation costs.
In addition to the management costs, the account holder must in fact pay stamp duty which amounts to more than 34 euros on an annual basis. Some account holders, depending on the bank contract, they have to pay commissions to perform some operations. Other banks also charge the cost of providing the ATM. Added to this is the negative weight of inflation which causes money to lose purchasing power. Over the years the quantity of goods and services that the saver can purchase for the same amount of money decreases.
Therefore, in just 5 years, it is possible to lose more than 1000 euros almost without being aware of it. This is because a third negative variable is added to the management costs and the loss of purchasing power. We refer to the failure to recognize interest rates that may offset the current account holder’s losses. If in fact the banking or postal institutions recognized substantial interest margins to the saver it would be convenient to plan the accumulation of sums of money.