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Inflation outpacing your account's interest rate is a risk factor which FDIC doesn't insure against. While your balance won't decrease, its buying power relativ
by VikingIV 3y ago
Inflation outpacing your account's interest rate is a risk factor which FDIC doesn't insure against. While your balance won't decrease, its buying power relative to the current dollar will weaken.
E.g. an $800k purchase in 2003 would now cost $1.3m.
- ActorNightly 3y agoInflation % vs interest % doesn't directly matter. If Im spending under a certain amount of the interest income, and reinvest the rest, its always going to be inflation beating.