Inflation

[davidbkk]

I have some cash invested in the UK in a bank at 4.75%. I'm not particularly bothered about making any money with it, its just there in case of emergency really. However, with all the talk of inflation, I'm just worried about its value in real terms being eroded. Is there a better way to invest this money to beat inflation or should taking advantage of the best interest rates available take care of it? I dont really want to invest in anything too risky. Asking too much?

[backflip]

Inflation where - the UK, Thailand? It doesn't sound that you've considered this too much. Regardless, if you're only looking for a safe short-term investment that matches the rate of inflation, a one-year CD will do OK.

[Firefan]

I tend to agree - shop around every time the CD is up for renewal and as the interest rates on CDs generally follow inflation resonably well.

Another alternative is to look for inflation proof bonds (TIPs/Ibonds or whatever they will be called in your country).

Cheers!

[oopapasan]

I have some cash invested in the UK in a bank at 4.75%. I'm not particularly bothered about making any money with it, its just there in case of emergency really. However, with all the talk of inflation, I'm just worried about its value in real terms being eroded. Is there a better way to invest this money to beat inflation or should taking advantage of the best interest rates available take care of it? I dont really want to invest in anything too risky. Asking too much?

U.S. treasury I bonds.