Nominal interest rate
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A nominal interest rate is the interest rate "as stated" - that is, not adjusted for compounding. An interest rate is called nominal if the period of time after that the interest is credited (e.g. a month) is not identical to the basic time unit (normally a year).
A nominal interest rate of 6% compounded monthly is equivalent to an effective interest rate of 6.16%. (Effective interest rate is always calculated as if compounded annually.) 6% monthly is credited as 6%/12 = 0.5% every month. After one year, the initial capital is increased by the factor (1+0.005)12 ≈ 1.0616.
If a nominal interest rate is adjusted for the lender's lost value due to inflation, that is called the real interest rate.
