Money & WorkFact

3% interest can still be a loss.

The nominal rate is the number the bank advertises. The real rate is nominal rate minus inflation, and only it tells you whether you're getting richer. Earning 3% interest with 4% inflation gives a real rate of about minus 1%: your balance rises, but you can buy less than before. Conversely, 1% interest at 0% inflation is a genuine gain.

Useful: A savings account only pays off when its rate beats inflation.

Source: de.wikipedia.org

Inflation Sparen Zinsen

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