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When you are earning interest is it better to have high or low rates?
Wiki User
∙ 8y ago
High rates.
However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.
Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.
Wiki User
∙ 8y ago
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How relatively high interest rates affect currency values?
What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".
What does a lower interest rate mean for savers?
It means that they are getting less money for deferring expenditure and saving instead. However, it is not the low nominal interest rates which matter but what the "real" interest rates are. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is bad news if inflation is higher than 10%.
Reasons for high birth rates and death rates in LEDC's?
Because they are stupid
Why are birth rates higher than death rates in INDIA?
culture and belief in having a son is better than having daughters are reasons for high birth rate. good health care service and technology are reasons for low death rate.
A shift from high birthrates and death rates to low birthrates and death rates?
demographic transition
Is there a bank better than Ally for high certificate of deposit interest rates?
There are many banks that offer competitive interest rates. You can check sites like Bankrate.com to compare interest rates
Consumers should be concerned about high interest rates because high interest rates?
High interest rates increase the cost of taking out a loan, making credit purchases more expensive.
How relatively high interest rates affect currency values?
What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".
Where can I find interest rates for a high certificate of deposit?
Interest rates are printed daily in the newspaper.
Impact of recession?
high interest rates such as the repo rates and high inflation rate
Is it better to spend your money investing or paying off your house?
This will depend on debt and interest rates. If the interest rate is low, investing may be a better option. If the rate is high, it may be better to pay it off.
Do Yes Loans charge outrageous interest rates?
Absolutely, Yes Loans charges extremely high interest rates. Not only that, but they also charge a very high fee just to be accepted into their loan program. There are many other companies that can offer better loan rates than this company.
Cash advance loans rip you off with high interest rates.?
Cash advance loans rip you off with high interest rates.
What is the benefit of fixed deposit interest rates?
Fixed deposit interest rates is a guaranteed interest rate for the entire term of an investment. They allow for the customer to earn high interest rates.
Where can I find out about a high interest CD?
There are no high CD interest rates in today's society. To get the best rates for investing in CDs, I would check some news articles or look into High-Yield CD rates.
How do financial institutions calculate interest rates?
Financial institutions base their interest rates on fluctuation of today's market. If the market is doing well then interest rates are high. If the market is down, interest rates goes down along with it.
What is the relationship between interest rate and labor supply?
There is not a direct link but high interest rates are associated with expectations of high rates of inflation. High inflation may be associated with high wage rises and so lower employment rates. Low employment rates would suggest excess labour supply. So, from one end of that chain to the other: high interest rates are associated with high labour supply.
