What is a negative interest rate & how does it impact your savings?
Updated: 14 Dec 2021, 03:23 PM IST
TL;DR.When the actual rate of interest paid to a depositor is less than the rate of inflation, the real rate turns out to be ‘negative’. Read further to know how inflation can eat into your savings
The real interest rate can be positive or negative based on the prevailing rate of inflation.