Money sitting in an ordinary savings account is quietly shrinking, which is bad news for careful savers who did everything they were told to do.

• Bank savings rates have paid far less than inflation for most of the last 15 years, so cash loses buying power every year.
• The Fed printed and lent huge amounts of money after COVID, and the money supply grew about a third while the country did not produce a third more stuff.
• Rates on savings accounts briefly beat inflation in 2023, but the Fed cut three times at the end of 2025 and yields fell back down.
• The strike on Iran and the closed Strait of Hormuz pushed gas and shipping costs up, and inflation jumped back above 4% in May 2026 before easing.
• Forgotten accounts can also be closed as dormant and handed to the state — about $70 billion is sitting unclaimed, and 1 in 7 people has some of it.

Outlook: With savings rates falling and prices rising again, cash left untouched will keep losing value, and moving it to a better-paying account is the easiest fix.