Khan Academy | Real vs. nominal interest rate | Banking | Financial Literacy | Khan Academy @khanacademy | Uploaded August 2024 | Updated October 2024, 1 week ago.
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khanacademy.org/college-careers-more/financial-literacy/xa6995ea67a8e9fdd:banking/xa6995ea67a8e9fdd:inflation/v/real-vs-nominal-interest-rate

The nominal rate is the interest you see advertised, not taking inflation into account. The real rate is what your interest looks like after considering how inflation affects your buying power, giving a better idea of how much your money will actually grow.

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