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Savings accounts aren’t inflation protected. You can buy inflation protected assets - US series I savings bonds, and they offer between 0 and 0.5% fixed rate hi
by javagram 7y ago
Savings accounts aren’t inflation protected. You can buy inflation protected assets - US series I savings bonds, and they offer between 0 and 0.5% fixed rate historically on top of inflation and are limited to $10,000 per person per year.
An actual high yield savings account right now gives around 2% nominal interest which is less than inflation.
The economist chart of house prices from the article certainly seems to show them outpacing inflation recently. Looking at an index since 1900 is a bit misleading since public policy changed dramatically in the 1950s-70s to constrict supply and juice demand.
- the_gastropod 7y ago> An actual high yield savings account right now gives around 2% nominal interest which is less than inflation. The inflation rate in 2019 was 1.76% [1] > The economist chart of house prices from the article certainly seems to show them outpacing inflation recently. Looking at an index since 1900 is a bit misleading since public policy changed dramatically in the 1950s-70s to constrict supply and juice demand. Ok, then look at it from 1970... The results are even worse [1] https://www.in2013dollars.com/inflation-rate-in-2019 https://www.in2013dollars.com/inflation-rate-in-2019