Millions of savers losing money as inflation outpaces bank interest rates

Australia has always been a pretty good nation of savers. It’s a part of our fabric. Want to keep your money safe and also build wealth? Just put it in the bank. A high interest savings account or term deposit will see the bank pay you interest for the privilege of holding onto your cash.Recent ABS data revealed that as of the March 2026 quarter, Australian cash investments sat at a record high $2 trillion.Aussies love savings products, but they are costing us big time. Picture: Gaye GerardIt sounds like a pretty good deal. But the bad news is that you may not be making any money at all.The thing about inflation is that cash is worth less money every single day than it was the day before.MORE: Aus warned today’s data forces RBA hike U-turnSo you want to make sure the return on cash you have invested is worth at least more than the current inflation rate, otherwise you’re losing money in real terms.A recent report by Trilogy Funds revealed average bank term deposit rates were 3.6 per cent in June this year. Online savings accounts returned an average of 3.1 per cent. And inflation as measured by the consumer price index (CPI)? The most recent headline rate was 4 per cent.Canstar’s S...