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World Interest Rates: Which Country Has the Highest Interest Rates?

countries with highest interest rates

As most Americans know, the best interest rates in America have been anything short of spectacular, and frankly they’ve been downright depressing. It’s sad when we actually celebrate a 1% return, right?

Despite getting accustomed to these all-time low interest rates, you’ll be glad to know that there is still some money to be made out there; you just won’t find it anywhere near the U.S.

World Interest Rates: The Highest Interest Rates in the World

While a savings or money market account isn’t considered “safe money” in some of these countries, it is rather intriguing to see what your money could earn in other parts of the world.

Here are some countries that currently offer the highest interest rates in the world on one-year time deposit accounts, or what we refer to as CDs, according to Deposits.org:

  • Ukraine: 19.00% APY
  • Iran: 18.03% APY
  • Mongolia: 15.10% APY
  • Uganda: 12.00% APY
  • Turkey: 10.75% APY
  • Rwanda: 10.50% APY
  • Myanmar: 10.00% APY
  • Syria: 10.00% APY
  • Nigeria: 9.75% APY
  • India: 9.42% APY
  • Armenia: 9.00% APY

How Does Our Banking System Compare?

Surprisingly, the majority of these countries have central banks that are responsible for controlling the currency much like the U.S. does. Furthermore, these countries also have well-established banks and others that are smaller and newer, much like our credit unions and small, local banks.

The only real difference between our systems is some of the terms we use. While the terms “savings account” and “money market account” are found throughout these banking systems, our common understanding of a certificate of deposit (CD) wasn’t found in these countries with the best interest rates.

In places like Myanmar, Vietnam and Ghana, what we understand as a “CD” was similar to their Time Deposit, Term Deposit and Fixed Deposit accounts.

Like our CDs, money must remain in these various accounts for a predetermined amount of time before the depositor is eligible to withdraw the principal deposit and earned returns. Common terms were three, six, nine, 12 and 18 months.

Don’t Get Too Excited

Before you jet off to one of these countries and try to take advantage of their high interest rates, know that the insurance on deposits is, unfortunately, not what we have here in the U.S.

Deposits in the United States are protected by either the FDIC (Federal Deposit Insurance Corporation) or the NCUA (National Credit Union Administration). While it’s easy to take this tremendous government benefit for granted, it’s not something that’s common in other countries.

Risk vs. Reward

As with all investments and bank accounts, especially in developing countries, it’s always important to weigh the amount of risk you take on versus the return that you’re going to get.

While it would be great to earn 11% on a CD, it’s nice to know that your money in the U.S. is fully protected in the event that your financial institution crumbles. However, the next time you think about moving across the world, you might want to consider one of the countries with the highest interest rates in the world!

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  • HERPLE&DERP INC

    actually, your money in the US is not protected

    as soon as banking institutions “crumble” so will the governments ability to finance the FDIC and the FDIC will be unable to insure deposits

    fun fact: insured deposits are a form of moral-hazard that lead depositers to increase risktaking and speculation – a cause of asset bubbles

  • Gundu banker

    Banks in Europe and us crumbled and lot of poor customers lost their money. India has stringent rules mady by RBIan these banks cannot indulge in futures trading above a particular level.westerners are in a false belief that their investments are safe.History have shown us where is it safe.

    • Sam

      India is a pile of shit dude.. Seriously, how many bank related scams have been in India? History has shown how pathetic and a piece of shit country India is in terms of logistics around banking. Only thing they have down pat is the ability to take your money really fast and effectively. Withdrawing funds is an issue.

      • Rahul

        Your mistaken, if anyone deposits money in banks in India it’s the safest as it is governed by strict rules formulated by the reserve bank of India, you must be a dumb student who doesn’t even know the meaning of history so before commenting on India look at your recession hit country you moron.

        • simplybeingtrakr

          Hi a tad late but i have replied to that worm called Sam . hope i wiped the smirk of his face . To run down India , he must be living in such a small house that if he orders a large pizza he must be eating it outside .

      • simplybeingtrakr

        Sam knows shit about India . Has he forgotten the Mortgage crisis / the biggest debtor still in the world is US of A .JP MORGAN is settling for a $13BN . Citigroup . GoldMan Sachs . You moron before you rundown India’s Banking .revisit USA ‘s current status . India has some of the finest financial brains which USA ‘s banks effectively poach to wipe the shit you guys created .

  • Navi

    You guys are nuts. If you have any kind of a fundamental American education (or can read for that matter) you’ll notice certain investments in the United States are insured; such as basic savings, checking, and CD’s. Anyone that says anything otherwise obviously has no knowledge of the American financial system and should refrain from any type of money-management in this system altogether.

    • yahmon

      And how is everybody going to get their cash if they all ran to the bank tomorrow?
      What they tell you is one thing, they can only cover it by printing, hence more devaluation of currency. Unless you have gold or assets you only have “I owe you paper”

    • http://www.facebook.com/profile.php?id=552864368 Jay Jay Barr

      …and only up to $100k per individual (per bank?) and $250k-ish for certain retirement accounts. There are limits.

  • Zvaonekwa

    An aspect that needs to be taken into account is the stability of the local currencies of the countries that have high interest rates. For example, if the exchange rate falls by 12% during the investment period the net return will actually turn out to be negative. May you please shed some light on the historical performance of those currencies against the US dollar over a reasonable period.

  • Abid

    Pakistani Banks are more secure than US or EU banks, simply because they are regulated by State Bank. Since the inception of Pakistan (i.e. 14th Aug 1947) not a single bank suffered financial crises or defaulted.

  • bahaba10

    if the bank (e.g. HSBC) in third world countries give 12.2% deposit interest, why in not in USA. either banks in USA are cheating us, or banks in USA are not doing business. which is not true, either banks will go out of business. is not shame for USA?

    • david

      The federal reserve is holding the interest rates down. So are the central banks of all the developed nations to insure that the “hard’ currencies do not collapse. The banks are not cheating you, it is the federal reserve and your government…obama

  • Chris Pasquariello

    “Hey, if you want me to take a dump in a box and mark it guaranteed, I will. I got spare time.”

  • Patrick Edem Agama

    You should take some risk sometimes. I don’t really care about the risk of not insuring your deposit. Ghana doesn’t have reputation of banking institution crumbles,

  • Patrick Edem Agama

    Great Post though

  • George Femiak

    I have a fixed deposit of more $12000 in 2 Indian National Banks. They are pretty awesome in terms of Interest Rate and money protection. History also matters when we think of investing our savings. History of Indian Banks are reputed and outstanding. At least I am making $1200 a year , God Bless the world.

  • Stefan

    Investments in India are pretty safe due to government and RBI norms. Especially in public sector banks

  • Lucky Man

    in Egypt it’s 13% now

  • Alex

    Insurance??? Please… The FDIC only has 2% of what would be needed to cover all bank suckers should the SHTF. So in theory, you’re insured for $5,000. In reality, you have no insurance at all. The government and the banks that control it can seize whatever it wants, and what are you going to do about it? Sue them?

    Safety??? Ever heard of fractional banking? In the US, banks are allowed to use 90% of your money for whatever investment, including lending it to someone else at an interest rate that is usually around 100% the interest you get, impose penalties to those people when they cannot pay back and eventually kick them out of their home! But that’s not your problem. You’ve got to ask yourself “how is my money safe in this bank if it’s not even there?”

    Etc…

  • Masum Zaman

    In Bangladesh have upto 13% interest/year and its safe.

  • theviking

    What does it mean “fully protected”? The FDIC has like 30 years to pay it off. They are just about broke. The dollar has been declared as fiat money by 178 third world nations forcing the US into asset backed TRNs which has been availabe OUTSIDE USA for some time and they are forcing it inside. Curtesy of the crooks in Washington.