A higher savings-account rate can feel like a win, especially when central banks are tightening policy. Yet the relevant question for purchasing power is the return after inflation and, where applicable, taxes and fees. A nominal gain does not automatically mean you can afford more goods and services next year.
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The comparison becomes trickier because price changes vary across households. Someone who spends a large share of income on rent, commuting or food may experience a different effective inflation rate from a national headline index. Cash can be useful for liquidity even when its real return is weak.
When people compare savings products, should they prioritise after-tax real yield, deposit protection, immediate access or predictability? There is no universal answer; the role of the savings matters as much as the advertised number.