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How can you calculate the loss of real value in a 10000 savings account if inflation is 10 a year for 3 years versus the loss of real value if inflation remains around 3. How much less would that savi?
Wiki User
∙ 6y ago
...savings account be worth if inflation goes up? (For this exercise, do not consider interest paid.)
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∙ 6y ago
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Does inflation rob you of your savings?
Yes and no. If your "savings" are not in a savings account, then technically yes. This is because your savings will slowly lose its purchasing power as inflation happens (emphasis on slowly, you will only "lose" 1-5% annually unless inflation spikes in a bad way). If your savings is in a savings account and is accruing interest, then no. This is because the interest will make up for the inflation.
Why should the interest rate on your savings account be greater than the rate of inflation?
We cannot say that the interest rate on our savings account should be greater than the rate of inflation, but we can say that the interest earned on our overall savings or investments should be greater than the inflation rate. That is because: Let's say you invested Rs. 100 in a bank that gives you 3% interest every year, which means your 100 would have grown to be 103 by the end of the year, but if the country's inflation rate if say 8%, something that was 100 rupees last year would be costing 108 rupees now which means your money has effectively lost its value. That is why we must invest in instruments that give us returns that are alteast greater than the inflation rate.
How do you calculate national savings?
private savings + public savings
Why open an savings account?
A savings account is a good place to keep money safe for future needs.
What's one difference between a checking account and a savings account?
savings account earns interest.
Does inflation rob you of your savings?
Yes and no. If your "savings" are not in a savings account, then technically yes. This is because your savings will slowly lose its purchasing power as inflation happens (emphasis on slowly, you will only "lose" 1-5% annually unless inflation spikes in a bad way). If your savings is in a savings account and is accruing interest, then no. This is because the interest will make up for the inflation.
Where can I find a savings account calculator?
You can calculate the value of savings in an account by multiplying your savings by the annual interest rate eg savings of 500 with 1% interest are worth (500 x 0.01) + 500 = 505.
Savings, Taxes, and Inflation?
Savings, Taxes, and Inflation The value of your savings can be affected by both taxes and inflation. Use this calculator to determine how much your savings will be worth with this in mind. Click the "View Report" button to get more information and a year-by-year savings schedule.
Do 529 College Savings plans adjust for inflation?
529 savings plans CAN adjust for inflation. This is usually based on the state your in and how large your savings plan is.
What are the benefits of astoria federal savings?
I have personally never heard of 'federal savings', but I do know that a savings account will usually give you extra interest so that you money will substantially increase over time. But remember, you must keep your money above inflation.
Savings Distribution Calculator?
Savings Distribution Calculator This calculator is designed to help you determine how much of your savings remains after a series of withdrawals. Enter your starting amount, how much to withdraw and how often and we will calculate your expected final balance.
Can you change a savings account to joint account?
You may be able to add someone to your savings account ..contact the bank where you have the savings account for details
In 1960 the inflation rate was about 5.1. If you invested in a savings account with an annual interest rate of 4.9 what was the real growth rate of this investment?
A real "growth" of -0.0019%, approx.
Calculate the new balance after one year on a savings account if the previous balance was 230.10 and the interest rate was 4.?
239.30
what Calculate the new balance after one year on a savings account if the previous balance was $230.10 and the interest rate was 4%.?
239.30
Why should the interest rate on your savings account be greater than the rate of inflation?
We cannot say that the interest rate on our savings account should be greater than the rate of inflation, but we can say that the interest earned on our overall savings or investments should be greater than the inflation rate. That is because: Let's say you invested Rs. 100 in a bank that gives you 3% interest every year, which means your 100 would have grown to be 103 by the end of the year, but if the country's inflation rate if say 8%, something that was 100 rupees last year would be costing 108 rupees now which means your money has effectively lost its value. That is why we must invest in instruments that give us returns that are alteast greater than the inflation rate.
How do you calculate national savings?
private savings + public savings
