What is left of a savings account after inflation?
A savings account can pay interest and still lose purchasing power. What decides it is the distance between the interest and inflation.
Nominal is what the statement says. Real is what you can buy with it. The lesson shows both, because only one of them pays for the shopping.
Figures for United States. Country and currency follow your choice in the header.
Balance (USD)
10 years
2.0 %
2.6 %
At today's prices (10 years)
US$9,430
On paper
US$12,190
Interest per year: +US$2,190
Purchasing power against what you paid in
-US$570
Real interest rate: -0.58 %
Worth remembering
Interest below the inflation rate is a slow loss, however the balance grows.
Source: US Bureau of Labor Statistics, CPI-U, all items, US city average (CUUR0000SA0), annual averages, as of 2026-08, retrieved 2026-10-05
Education, not advice. Disclaimer