Let’s talk about that old reliable: the humble, low-interest savings account. You know the one—steady, boring, the financial equivalent of wearing sensible shoes. It keeps your money safe, pays a little interest, and gives you peace of mind that your funds are there when you need them. For short-term needs and emergency funds, a regular savings account is a perfectly reasonable place to park your cash. It’s FDIC insured, it’s easy to access, and your balance never mysteriously vanishes overnight.

But here’s the rub: the same features that make savings accounts “safe” also make them poor choices for long-term savings. We’re talking about that dream vacation in five years, your kid’s college fund, or even retirement. The typical savings account yields somewhere around 0.01% to 0.50% interest annually. Even high-yield online savings accounts might only get you 4% at best. Meanwhile, inflation—the silent wealth eroder—hovers around 3% per year, sometimes more. That means your money is essentially shrinking in value the longer it sits in a low-interest account.

Imagine this: you put $10,000 in a traditional savings account and leave it there for 10 years. At 0.05% interest, you’d earn about $50 total. Not $50 per year. Fifty dollars. Over a decade. Meanwhile, if inflation averaged 3% annually, your $10,000 would lose over a quarter of its purchasing power. That’s the sneaky downside to playing it too safe.

So, what’s the alternative? For funds you don’t need to touch for several years, consider options that offer better long-term growth. Index funds, for example, have historically returned around 7% annually. Even conservative bond funds or a diversified mix of mutual funds can provide returns that at least outpace inflation. If you’re saving for retirement, tax-advantaged accounts like IRAs or 401(k)s let your investments grow faster with compound interest and tax benefits.

Of course, risk is part of the deal—but risk doesn’t mean recklessness. The goal is to match your time horizon and risk tolerance with the right type of savings vehicle. A year from now? Stick with that savings account. Ten years from now? You’re better off letting your money do more than nap in a vault.

In the end, saving is always a smart move. But how and where you save makes all the difference between protecting your money and actually growing it.