‘Your savings are shrinking silently’: Expert explains how your salary account is to blame

Most people celebrate payday with a sense of relief and comfort. But what many don’t realise is that while their salary may be arriving every month, it’s also silently losing value—thanks to inflation and poor money management.

Chartered Accountant Abhishek Walia has sparked a timely conversation with a bold claim: “Your salary account is stealing from you.” The reason? The bulk of salaried individuals park their entire monthly earnings in a basic savings account that yields a mere 3–3.5% interest, while inflation is running at 6–7% annually.

This means your money is essentially depreciating in real terms. For example, if you leave ₹2 lakh in your salary account untouched for a year, you’ll earn around ₹6,000 in interest. But with inflation eroding about ₹14,000 worth of purchasing power, you end up with a net loss of ₹8,000.

“This is how money shrinks without you noticing,” Walia explains.

So, what’s the solution?

Walia suggests a smarter, more proactive approach:

Keep only 1–2 months’ worth of expenses in your salary account

Transfer the surplus to better-yielding options like:

Liquid mutual funds for short-term needs with relatively low risk

Index funds for long-term wealth creation

The key is automation. “Set up an automated system that transfers excess funds from your salary account the day your salary comes in,” he advises. “That way, you’re consistently investing without even thinking about it.”

This disciplined allocation not only protects your income from the invisible tax of inflation, but also gets your money to start working for you, through compounding returns, market-linked growth, and better financial discipline.

Walia’s bottom line: “Money sitting idle is money going backward.” Instead of just working hard to earn, it’s time to make your money work too, even while you sleep.

His viral post ends with a prompt: “How much do you keep in your savings account each month? Drop a number. Let’s talk smarter allocation.”

In an age where financial literacy is key to wealth building, this reminder might just be the wake-up call salaried professionals need.