Consider moving to a country where you may earn a lot of interest on savings accounts.
In a nation with sky-high interest rates, simply keeping your money in a bank could see significant growth. Take a look at the countries that offer high-interest rates.
Despite rising interest rates in the US, keeping your money in a savings account won’t make you wealthy. However, in a nation with sky-high interest rates, simply keeping your money in a bank could see significant growth. Consider moving to a country where you may earn a lot of interest on savings accounts. So, if you’re thinking about doing so, be careful to keep a check on inflation rates as it may affect your interest rates.
Continue reading to learn about real interest rates, the nations with the highest deposit interest rates, and how inflation affects those interest rates.
What is Inflation and Real Interest Rate?
Inflation is used to describe a long-term increase in the cost of goods and services. A certain amount of inflation is normal, but high inflation rates are problematic.
Meanwhile, the interest rate less than the inflation rate is your “real interest rate.” In this case, you would make 2% of your deposited money. While earning 5% annually in interest, the cost of goods and services rises by 3% as a result of inflation, leaving you with only 2%.
Countries offering High-Interest Rates
Zimbabwe, an economically struggling African nation, has a bank interest rate of 200 percent, which means if you invest your money in FD, your deposit is going to increase three times in value within a year. But the rate of inflation here is 255%. Thus, inflation-adjusted interest rates become 55 percent.
Argentina is among the second highest interest-paying countries in the world. Here people are offered the bank interest rate of 75%. However, for the unversed, the rate of inflation in this country is 88 percent.
Here the bank interest rate is 57.88 percent. Despite having the world’s largest oil reserves, equal to 300 billion barrels, this country has tremendous inflation. Here the inflation has gone up to 156% whereas the interest is only 57.88%
The interest rate in Sudan is 27.3% and this is the highest interest rate in any African country. The economy of Sudan was $175 billion in 2019.
Here the interest rate is valued at 20% but the rate of inflation is the highest in any European country.
The interest rate in Ghana is 27 percent but the rate of inflation in this country is also up to 40%. Like other African countries, the people of Ghana depend majorly on agriculture for their survival.
Ukraine, which has been fighting a war with Russia offers a rate of interest at 20 percent. On the other hand, the inflation rate here is 26.6 percent.
Angola, an African nation, has a 19.5% interest rate until November 2022 while enduring 16.68% inflation. The nation is supported by its abundant natural resources, which are primarily diamonds and oil.
Read all the Latest Business News here