Inflation is raging! How to defend Your Savings

In fresh years inflation became 1 of the main challenges for Polish households. According to the forecasts of the National Bank of Poland (NBP), the average yearly inflation of CPI in 2025 is expected to scope 4.3%and in 2026 3.3%. In the face of rising prices of goods and services, it is worth considering how protect your savings before losing value.

1. taxation bonds indexed with inflation

One of the popular ways to safe savings are inflation-indexed government bonds. Their interest rates depend on the inflation rate, which allows real equity to be maintained. For example, in the case of 6-year bonds, the interest rate may be 1,50% plus inflation rate, which at inflation level 8.20% gives almost 10% profit. However, it should be borne in head that Belka tax on the interest received.

2. Diversification of the investment portfolio

Diversification is simply a key strategy to defend savings from inflation. Investing in various assets, specified as shares, real estate is raw materials (e.g. gold), can aid minimize risks and increase possible profits. It is worth noting investment funds with low management fees, which offer a wide scope of financial instruments.

3. Bank deposits and savings accounts

Bank deposits and savings accounts are conventional forms of savings. However, in times of advanced inflation, their interest rates may not keep pace with price increases, leading to a real failure in the value of the accumulated funds. Before deciding to place money in this kind of products, it is worth comparing offers from different banks and drawing attention to real interest rate, i.e. taking into account the impact of inflation.

4. Real property investments

Real estate They are frequently considered to be good protection against inflation. Their value tends to grow over a longer period, and in addition can make income from rental. However, investment in real property requires crucial first capital and take into account maintenance costs and possible marketplace developments.

5. Gold and precious metals

Gold It has long been considered a "safe haven" in times of economical uncertainty. Its value frequently increases during periods of advanced inflation and currency decline. Investment in gold can be accomplished by purchasing physical aggregates, certificates or investment funds related to precious metals.

Investment funds and ETF (Exchange Traded Funds) offers an chance to invest in a diversified asset portfolio at a comparatively low entry threshold. erstwhile selecting funds focused on inflation-resistant sectors specified as natural materials or real estate, the chances of capital protection can be increased.

Investing in financial education allows for a better knowing of marketplace mechanisms and informed investment decisions. cognition of various financial instruments and investment strategies can importantly increase the effectiveness of saving against inflation.

Protecting savings from inflation requires a conscious approach and diversification of investments. It is worth regularly monitoring the economical situation, analysing the options available and adapting the saving strategy to changing marketplace conditions. Remember that any investment involves a risk, so it is worth consulting your financial advisor before making a decision.