‘Real’ returns for savers heading close to negative

Your "savings" account has a negative (-2.14%) real rate of return June 2, 2017 at 7:10 pm by PeakProsperity The other day I was in my local branch of a Too Big To Fail bank where I have a few accounts.

Fixed income returns should remain positive in the second half of the year, but probably won’t repeat the first half’s sharp gains. The key question facing the bond market is whether the economy is.

More home sellers cut asking price A Land park seller owned a home that was located along the I-5 freeway in Sacramento, California. It hadn’t sold after 60 days on the market. To sell it, the price had to be less than anything else in the neighborhood, which was the very reason the seller had purchased the home in the first place.

In a slowly growing or recessionary economy, the equilibrium real rate is likely to be low, since investment opportunities are limited and relatively unprofitable. Government spending and taxation policies also affect the equilibrium real rate: large deficits will tend to increase the equilibrium real rate (again,

(B)Savers would ignore inflation and tax differentials at their own peril since the expected real rate of return is the principal criterion for making asset choices in terms of expected returns on assets.

Superannuation funds are in the black for a record 10-year period with research group Chant west estimating returns for the June year in the ‘growth’ superannuation returns are in the black for a.

BoI offers worst deal for lost trackers The best and worst student accounts students will owe thousands more than they need to borrowing from the wrong bank, writes Louise McBride With this in mind, the Sunday Independent examined what.

If the real interest rate was negative for a period of time, then: A) inflation is expected to exceed the nominal interest rate in the future. B) inflation is expected to be less than the nominal interest rate in the future. C) actual inflation was less than the nominal interest rate.

As NIBC has been gradually reducing its exposure to German mortgages, it looks like the bank is heading in. a normal’ return on its investment portfolio, we might see a dividend higher than 34.

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Slowest rise in house prices for four years House prices rise at slowest rate for four years | Ireland. – House price inflation is at its lowest level in four years as the increase in building begins to affect the market, according to a report.Nationally, prices were 5.6 per cent higher than they were.The student debt dilemma: Is it worth paying off your child’s loan? Graduates are now leaving university with debts so high they are unlikely to ever pay them off – perhaps even if they go straight into a job paying 48,000. The cost of getting a degree now lumbers students with a collosal average debt of 50,000, and high interest rates mean most won’t pay it back [.]

Unfortunately for savers, it’s unlikely there will be a lift in returns from bank deposits any time soon.

Unfortunately for savers, it’s unlikely there will be a lift in returns from bank deposits any time soon. That’s because returns on bank deposits are a symptom of a much wider phenomenon in the financial world – ultra-low interest rates.