With inflation chipping away at your spending power, here's how can you protect yourself, and one way to earn more interest on your savings.
Inflation — the rise in consumer prices — is a slow erosion of your money over time. Before 2021, the U.S. hadn’t seen annual core inflation much above 3% for the better part of 25 years, says Michael Ashton, managing principal of Enduring Investments, a consulting and investing firm in Morristown, New Jersey.Inflation — the rise in consumer prices — is a slow erosion of your money over time. Before 2021, the U.S.
Try to bring more money in The inflation-matching savings account Another inflation-fighting idea: Series I savings bonds. They were created specifically to protect consumers’ purchasing power against inflation, says Zvi Bodie, professor emeritus in finance at Boston University. Bodie holds a doctorate in economics from the Massachusetts Institute of Technology and has become an avid proponent of I bonds.
You can withdraw your savings without penalty after one year, but if you cash them in before five years, you’ll lose the last three months’ worth of interest.