The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation’s effects into account. Economists, as well as lenders ...

When you want to generate income rather than equity growth, a debt security like bonds is your most likely choice. However, all bonds are not the same. Bonds pay different interest rates and carry ...

Carol M. Kopp edits features on a wide range of subjects for Investopedia, including investing, personal finance, retirement planning, taxes, business management, and career development. Betsy began ...

If you take out a loan for your business, you will pay the cost of borrowing in the form of an interest rate. Alternatively, if your business has a savings account, you will be paid an interest rate ...

Bond investors can cheer real interest rates hitting a 15-year high. That’s because bonds historically have performed better in the wake of higher rather than lower real rates. The real interest rate ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Robert Kelly is managing director of XTS Energy LLC, and has ...

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...