In finance, there is a concept that very few people consider when comparing savings products: the real APY. Not the nominal APY listed in the bank's brochure, but the APY adjusted for inflation. The formula is simple:
Real APY ≈ Nominal APY − Inflation rate
If your deposit pays a nominal 2.5% and inflation is at 3%, your real APY is -0.5%. You’re losing purchasing power even though you’re earning interest.
The outlook for 2026: falling rates, moderate inflation
By 2026, the ECB has lowered interest rates to around 2.25–2.5%. This has dragged down the APYs of the safest products:
- Interest-bearing accounts: 2.0–3.5%
- 12-month term deposits: 2.5–3.5%
- Spanish Treasury bills: ~2.4%
- EUR money market funds: 2.2–2.8%
Meanwhile, Spain’s CPI has hovered around 2.2–2.8% in recent months. Result: the real APY on the safest products is close to zero or slightly positive.
What APY do you need to maintain purchasing power?
Rule of thumb: you need a nominal APY equal to or higher than inflation. With 2.5% inflation, you need at least 2.5% to break even. With 3% inflation, you need more than 3%.
Taking taxation into account (interest is taxed at 19–28% under personal income tax), the after-tax APY will be lower. For a 19% tax bracket, a 3.5% APY yields a net APY of ~2.84%. If inflation is 2.5%, the real net APY is +0.34%. You’re barely breaking even.
The products that best protect against inflation in 2026
| Product | Approx. APY | Estimated real APY* |
|---|---|---|
| Binance DOT Staking 120d | 6.5% | +4.0% (but with price risk) |
| USDC Lending Euler DeFi | 6.7% | +4.2% (in dollars, platform risk) |
| Mintos Crowdlending | ~10% | +7.5% (high default risk) |
| XTB 12-month deposit | 3.5% | +1.0% (risk-free) |
| ES 12-month Treasury Bill | ~2.4% | -0.1% (risk-free) |
| Average interest-bearing account | ~2.2% | -0.3% (risk-free) |
*Estimated real APY after subtracting 2.5% inflation, before taxes.
Conclusion: Inflation punishes those who don’t look
Leaving money in a checking account (0% APY) with 2.5% inflation means losing 2.5% of purchasing power per year. Finding the best available APY—tailored to your risk profile—isn’t greed; it’s basic financial hygiene.
At APYData, we update the APYs of over 140 financial products daily, from bank deposits to crypto staking and DeFi. It’s the tool that lets you answer the question in seconds: Is my money growing or shrinking?