Deposit Glossary

Real Interest Rate

A practical explanation of Real Interest Rate, including what it means, how it is used, and why it matters in real savings decisions.

Definition

Real interest rate = nominal interest rate - inflation rate. It reflects the amount of wealth growth that investors actually get after removing the effects of inflation.

? Why Should You Understand Real Interest Rate？

In the complex financial market, mastering core terminology is the first step in risk prevention. A thorough understanding of Real Interest Rate helps you make more rational decisions when choosing fixed deposits, large CDs, or other stable financial products, avoiding losses from information asymmetry.

Related tools

Interest History Page

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Latest deposit rates for 2026

Demand deposit

0.05%

Fixed deposit

Term Rate

3 months 1.05%

1 year 1.35%

5 years 2.00%

Common interest-calculation questions

Q: What is the basic formula for bank interest? A: Basic interest = principal x annual rate x deposit term in years. That is the core formula behind simple-interest estimates.
Q: How much interest can 10,000 yuan earn in a 1-year fixed deposit? A: For example, at 1.45% for 1 year, 10,000 yuan would earn 145 yuan in interest.
Q: Can the actual interest differ from the estimate? A: Yes. Early withdrawal penalties, daily accrual methods, promotional CD rules, and bank-specific policies can all change the final amount.
Q: Is the gap between demand and fixed deposits large? A: Usually yes. Fixed deposits and large CDs often offer much higher rates than demand deposits, especially when funds are not needed soon.