The rate you earn after subtracting inflation
The real rate is the headline (nominal) rate minus the rate of inflation. Earning 2% while prices rise 3% leaves you at minus 1%: the money in your account buys less than before. It shows whether savings are truly growing, and when real rates are low, money tends to move out of deposits toward stocks and property.
A 2% rate with 3% inflation leaves a real rate of −1%.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.