Savings Return turned negative? Unit Trust is your answer!

Let's see this simple equation:

Real Interest Rate = Rate-(tax+rate of inflation)

Based on the article published on The Star ( the link to the article here)

Based on the January 2009 Consumer Price Index of 3.9%, savings which offer the best rate (Fixed Deposit offers the rate of 2.50%) are already in the red!!! Which means, even if you save all your money safely in the bank, your money is losing value every moment. This is the POWER OF INFLATION!

So why are you keeping your money there? Oh ya.. I know, you will said it's safe, no risk..ya, sure! Of course no risk, cause it's a CERTAINTY that you will be losing the value of your money!

Sure enough, when Fixed Deposits offer interest rates of more than 10%, you will go for FD and deemed unit trust a risk..but now?

FD always offer certainty, and now it's certain to LOSE, and unit trust is the opportunity (instead of risk) to earn REAL INTEREST.