Wealth Awakening
Bank Fixed Deposit at 1.35% Can't Beat Inflation: 3 Truths About Capital Protection vs Preservation
You park money in a bank fixed deposit and get back only 1.35% per year, while Taiwan inflation averaged over 2.7% in 2022–2023, eroding 2% of your purchasing power every year. This article breaks down the fundamental gap between principal protection and value preservation, the bank's interest-spread business model, the 3-to-5-year lock-up trap in structured products, and runs three end-state scenarios for NT$1 million over 10 years. It closes with a four-step action plan you can start today. If you have been told your fixed deposit is "safe," you need to hear what kind of safety that actually is — and what it is costing you in real purchasing power.