Tesco Bank halts online payments after money was taken from 20K accounts

Re:Tesco Bank halts online payments after money was taken fr... by DicksenZuider on Monday November 07, 2016 @11:28AM (#12892279)

Certain statistics are usually inflation adjusted, like GDP. Real Gross Domestic Product measures economic output adjusted for inflation or deflation. If inflation is 20%, and you're earning 3% interest, your losing purchasing power. If inflation is 1% and you're earning 3%, you're gaining.

Real, not nominal, returns are what people care about.

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Re:Tesco Bank halts online payments after money was taken fr... by rifung on Monday November 07, 2016 @01:25PM (#12893476)

> If inflation is 20%, and you're earning 3% interest, your losing purchasing power.

Yes but I think the point the person you're replying to is trying to make is that it doesn't matter because the inflation rate is not dependent on where you put your money.

Shouldn't the comparison be to the interest rates and risk with comparable places to put/invest your money? I suppose if inflation were extremely high or low compared to interest rates then it would affect your appetite for risk vs interest rate, but I don't think that's the case here.

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Re:Tesco Bank halts online payments after money was taken fr... by foota on Monday November 07, 2016 @01:28PM (#12893496)

You need to consider real returns only if the inflation rate varies between things you're looking at, i.e., across countries or time.

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