FINNAC Blog
A fixed number at maturity is not the same as fixed value. We write about the gap between nominal returns and real purchasing power, and how financial products can be designed to close it.
When a bank advertises a return, the number shown is the nominal return: the extra money you will receive. What it does not show is how much of that extra money will be absorbed by the rising cost of things you buy. That absorbed portion is purchasing power loss, and it is silent, gradual and almost never shown next to the interest rate.
This blog exists to make that number visible, alongside thinking on how financial products can be designed to account for it from the start rather than leaving customers to calculate it themselves.
Figures are illustrative. Source: IMF World Economic Outlook, July 2026.
A deposit promises a larger number at maturity. Here is why that larger number can still represent less real value.
Fixed terms or fully variable? A governed range offers a middle path for products that need to keep pace with conditions.
Coming soon: a framework for assessing whether an inflation-resilient attribute fits a product portfolio.
Move each slider and see what your money is really worth at maturity after inflation.