Interest rates of Banks

Bank deposit Interest Rates
























An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor). Specifically, the interest rate (I/m) is a percent of principal (P) paid a certain amount of times (m) per period (usually quoted per annum).

The real interest rate is the rate of interest an investor expects to receive after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate

The relation between real and nominal interest rates and the expected inflation rate is given by the Fisher equation

    1+i = (1+r) (1+\pi^e)