The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation’s effects into account. Economists, as well as lenders ...

Carol M. Kopp edits features on a wide range of subjects for Investopedia, including investing, personal finance, retirement planning, taxes, business management, and career development. Betsy began ...

The nominal interest rate may be cited in a financial institution advertisement for a loan or deposit. But nominal interest rates provide only rough estimates of how much it costs to borrow money or ...