My father doesn't trust banks — all his money is in a chequing account or under his bed. Is this costing him a fortune?

He has spent decades building up his nest egg, yet refuses to invest any of it. Instead, he keeps most of his money in a chequing account and the rest in cash in a lockbox under his bed. He doesn’t trust financial institutions or the stock market, and he’s convinced that investing could leave him with nothing.

But Lauren worries the opposite is happening. She’s heard that money sitting in cash gradually loses purchasing power over time, but she doesn’t feel confident enough to explain why. She’s not sure whether it’s her place to try to change her father’s mind at all.

It’s a situation some adult children will eventually face. They want to help ageing parents make sound financial decisions, but without overstepping or dismissing concerns that have been shaped by decades of life experience.

Why playing it safe with money can come with a cost

Lauren’s concern is valid, because money sitting in a chequing account can slowly lose its buying power. The balance might look exactly the same every year, but if those dollars aren’t earning much interest, they will not stretch as far as they once did, thanks to inflation.

The Consumer Price Index (CPI) shows Canada’s annual inflation rate climbed to 2.8% in June 2026. While that figure declined from 3.2% in May, it’s still above the Bank of Canada’s inflation control target of 2%, which it aims to hold within a range of 1% to 3% over the medium term.

For example, $100,000 sitting entirely in cash for 10 years would keep only somewhere between roughly $73,000 and $82,000 of its purchasing power, depending on whether inflation runs closer to the Bank of Canada’s 2% target or its recent pace. The account balance would still show $100,000 — but that money would buy less.

Still, it’s easy to understand why Lauren’s father feels the way he does. At 75, after spending decades saving, he may see investing as a risk he doesn’t need to take. Watching an account balance rise and fall with the market can be uncomfortable, especially when that money represents years of hard work.

There’s nothing wrong with keeping some cash on hand. Many retirees like having money they can quickly access for bills, home repairs, medical costs or other unexpected expenses. The bigger question is whether every dollar needs to stay there.

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Safer options than a lockbox under the bed

For Lauren’s father, the answer probably isn’t putting all of his savings into stocks. Luckily, there are options that sit somewhere between a chequing account and the stock market, including High-Interest Savings Accounts (HISAs), Guaranteed Investment Certificates (GICs) and Treasury bills.

As of mid-2026, HISA rates in Canada range from about 1.5% to 4.75%, depending on any promotions available. Meanwhile, GIC rates for terms of 1 to 5 years range from about 2.25% to 3.85%, depending on the institution and any promotional offers. These options mean his money will earn something while still giving him a level of security.

It’s also worth noting that money held at a bank is protected, contrary to what Lauren’s father assumes. Deposits are insured by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000 per insured category, per institution. This includes chequing accounts, savings accounts and GICs at member institutions. His “trust” issue may be about something else entirely.

The cash hidden in the lockbox is a separate issue

Unlike money held at a financial institution, cash kept at home can be stolen or destroyed, and there could be no way to recover it.

It can also create problems in the future if someone needs to help manage his finances or settle his estate. If he keeps cash at home, he should make sure someone he relies on knows it exists and where important records are kept — or else it can become a headache for family members down the road.

Lauren could also be looking at her father’s decision the wrong way. He says he doesn’t trust banks, but he already keeps the majority of his money in one. What he may actually be worried about is losing money in investments.

That’s an important difference. A conversation about moving some money into a higher-interest account or exploring conservative options could be prudent given his current reservations.

The first question Lauren will want to ask is what, exactly, is he afraid will happen? Is he worried about a market crash? Losing access to his money? Not understanding how investments work? Once she knows the reasons behind his hesitation, she could have a better chance of helping him find an approach he’s comfortable with.

Getting professional, unbiased help

If Lauren brings this up with her father, the conversation probably shouldn’t start with investments.

Telling someone who has spent decades avoiding the stock market that they need to invest more is unlikely to change their mind. A better place to start is understanding what’s making him uncomfortable in the first place.