That's definitely not universally true; my US bank pays 3.2% interest on savings
replyAnd what is inflation?
replyA general, continuous increase in the overall price level of goods and services in an economy over time.
replyNot really related to the discussion here though, since we were determining whether the interest rate is zero.
Any interest rate that is equal to or less than inflation is functionally zero (or less).
replyThis is a thread about a EU bank, and banks in the EU both have some standard interest rate on savings accounts, and moreover might offer time-restricted savings accounts with an even higher rate. That said, they track poorly with inflation compared to actual investment.
replyI get 4% (instant access savings account with Revolut, UK)
replyAlly has been 2% from before Covid and currently is at 3.2%
replyZero is also a number, although not all Mathematicians accept that. 0% interest does not change the essence of the monetary relationship with your bank, or the risk profile.
replyMy bank in the uk pays me 3%
replyI have been able to easily find a US bank that pays roughly SOFR minus 25 basis points for FDIC insured savings accounts, even before 2020.
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