Nominal Interest Rate
A return or rate stated before adjusting for inflation.
A nominal rate is the headline number before inflation is taken out. A savings account paying 4% nominal, in a year with 3% inflation, delivers only about 1% in real purchasing power. Nominal figures are what you see quoted, but real figures are what determine whether your money is actually gaining ground.
The distinction matters most over long horizons and in future-dollar projections, where nominal amounts balloon to numbers that feel unreal. Translating them back to today's dollars — the real value — is what makes them interpretable.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.