By Robert M. Nordlund, PE, RS  |  Association Reserves

Interest earnings bring income to the association that inflation takes away. But do they offset each other? Well first, it helps to understand the difference between the two. Interest earnings are income the bank shares with you from profits they have made with the money you deposited in their institution. More interest earnings are good, as they mean fewer owner contributions are needed to pay bills. Inflation, however, is far more significant to an association than interest, because inflation works its effect on the entire value of all your Reserve components. Interest is only earned on the much smaller amount of (Read the rest)…