Regular Asset Interest Rate

It has been my experience that you don't get the same interest rate for borrowing versus saving - hence banks make money. Does ESPlanner use the same interest rate for negative regular assets (i.e. borrowing money) and positive regular assets (i.e. money in a bank account)? Is this interest rate set by "Assumptions/Nominal RoR/Regular Assets"? If rate is the same for borrowing and saving, then how can I indicate/set a difference? If rate is not the same, explain how ESPlanner accounts for this and how I need to set inputs.

Comments

Yes, ESPlanner uses the same assumed nominal RoR for regular assets for both savings and borrowing. You can't change that.
However, you can add special expenditures to account for any extra borrowing costs.

Thanks. It does not make since that ESPlanner's RoR is the same for borrowing as saving, but at least there is a method to add borrowing costs. I find that ESPlanner suggests burrowing when I set RoR low and max indebtness high. I now see why.