Let’s face it, inflation isn’t going anywhere soon. But what does this mean for your money? Let’s have a look at what causes inflation and what can be done to protect your savings from it.
First things first, inflation refers to the rate of increase in prices of goods and services over a period of time. If the cost of a $1 item rises by 5 cents, then its inflation is 5%. This increase in price is often caused by an increase in the production costs of certain items, as well as surges in demand for specific products and services.
Let’s have a look at the current state of affairs.
The average price of groceries has increased by 14% over the last 10 years.
Your monthly commute has increased by 6.2% over the last 10 years.
House prices have increased by 163% over the last 10 years.
Things aren’t looking great. But what can you do about it? Luckily, there are ways to hedge against inflation and earn higher interest rates - and traditional savings accounts are not the answer.
We previously discussed how crypto can protect investors against inflation in this blog post, but did you know about the potential of DeFi?
DeFi-powered earning - whether that’s staking, yield farming or lending - has taken off in recent years as an alternative way to earn passive income. But while DeFi protocols typically generate high yields, they’re not always easy to get to grips with.
Here’s where Wirex comes in. We designed X-Accounts to provide easy access to the benefits of DeFi, without the complicated steps and high fees that usually come with it.
X-Accounts do this by automatically depositing your funds into a secure DeFi protocol with a guaranteed high yield. All you have to do is move your funds into one (you can open up to 10 at a time), then we do the rest for you.
And when we said they earn significantly higher interest rates than conventional savings accounts, we weren’t kidding. Depending on your price plan, X-Accounts pay out up to 20% AER on select currencies. If you choose to be paid in-kind your earnings are compounded daily (which means interest on your interest) and you’ll get you up to 16% AER. If you prefer to be paid in WXT, you’ll score an extra 4% interest!
Unlike your bank’s savings accounts, X-Accounts also put you in complete control of your funds. You can forget fixed terms, minimum deposits and fees for set up, maintenance and withdrawal. You should be able to do whatever you like with your money - move it, take it out whenever you like or keep it in and earn even more.
There’s no better time to make your money work for you.