Saver situations during Covid times were difficult. Inflation was high when interest rates were low.
People were setting money aside for uncertain times because of the fear psychosis.
Real interest rates were negative as indicated by the apparent interest rate relative to inflation.
Things have changed drastically since then. The current SBI deposit rate for two years is 7% for non-senior citizens
4.7% CPI inflation is expected in April 2023. Real interest rates are positive 2.3% on an approximation
It equals (1 + 7%) / (1+4.7%) - 1 = 2.2% according to the formula. Bank interest rates are not now decreasing
The 5.2% CPI inflation forecast by the RBI is for the fiscal year 2023–2024.
Real interest rates will continue to be favourable even if they are a little off. In light of this circumstance, savers