ECONOMY STUDIOSavings vs inflation
Is your savings rate beating prices? The average savings account pays 0.38%; prices are rising 3.7% a year.
- Balance
- $10,191
- Change in buying power
- −$1,502
- Real interest rate, per year
- -3.20%
$10,000 earning 0.38% a year grows to $10,191 in 5 years.
With prices rising 3.7% a year, that $10,191 will buy what $8,498 buys today: a loss of $1,502 in buying power.
To keep up with prices, savings would need to earn at least 3.7% a year.
Year by year
| Year | Balance | In today's money |
|---|---|---|
| 1 | $10,038 | $9,680 |
| 2 | $10,076 | $9,370 |
| 3 | $10,114 | $9,070 |
| 4 | $10,153 | $8,780 |
| 5 | $10,191 | $8,498 |
How it works
Your balance grows at your APY each year; each year's balance is then divided by inflation to show what it would buy at today's prices. If the second line on the chart falls, your savings are losing buying power even as the balance rises.
Follow the $100: how inflation actually works, and what your $100 from any year is worth now.
Questions
Is my savings account beating inflation?
Only if its rate is above inflation. The average savings account pays 0.38% (FDIC, October 19, 2026), while prices rose 3.7% in the 12 months to September 2026. Enter your own account's rate to check yours.
What does "in today's money" mean?
What a future balance will buy at today's prices. If prices rise faster than your balance, the same dollars buy less, even though the number in your account goes up.
What is a real interest rate?
Your rate after inflation: roughly the interest rate minus the inflation rate. Negative means your money is losing buying power.
Which accounts pay more?
On average, money market accounts pay 0.63% and 12-month CDs 1.76% (FDIC national averages); rates vary widely between banks. This is a comparison tool, not a recommendation.
Sources
Educational tool, not financial advice. Results are estimates from the numbers you enter; lenders and banks calculate in their own ways. Default rates update automatically from official data.