These Countries Offer the Highest Interest Rates Today

Unhappy man looking at bills sitting at table in living room.
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With extremely low interest rates in the United States, you won’t get rich by parking your money in a savings account. But in a country with extremely high interest rates, your cash could make a nice chunk of change just sitting in the bank. If you’re thinking about relocating, consider countries where you can earn substantial interest on savings accounts or other types of deposit accounts, but make sure to factor in how inflation affects interest rates.

Keep reading to find the countries with the highest interest rates on deposit accounts, see how inflation affects those interest rates and learn about real interest rates.

Interest Rates Today: The Highest Interest Rates in the World

Checking, savings, money market account and CD interest rates in the United States have improved but are still are low. Consider that the national average interest rate for savings accounts is 0.21%, according to the Federal Deposit Insurance Corp.

You might be wondering if rates are better in other countries. The answer is yes — many do offer better rates on savings and other deposit accounts. But there are risks, including unstable governments and economies. Additionally, the FDIC only insures domestic deposits, and some countries have protection that is much less developed. With that in mind, here is a list of countries offering the highest deposit interest rates worldwide:

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Ranking Country Deposit Interest Rate
1 Zimbabwe 92%
2 Argentina 70.07%
3 Venezuela 36%
4 Moldova 19.5%
5 Uzbekistan 17.9%
6 Madagascar 13.75%
7 Hungary 12.5%
8 Georgia 11.81%
9 Uganda 10.05%
10 Brazil 10.03%
11 Egypt 9.1%
Source: Trading Economics 

How Inflation Factors Into the High Interest Rates

When the price of goods and services rises over time, it’s called inflation. A certain amount is healthy, but high inflation rates are a sign of trouble. The problem occurs when consumers buy instead of save, which contributes to higher inflation and weakens the purchasing power of the dollar. 

To keep inflation in check and encourage saving, the Federal Reserve will raise interest rates on occasion. To understand the effects of a rate increase, assume, for a moment, that inflation is 3%, but you can get 5% interest by placing your money in a savings or money market account. Under these conditions, you might choose to save instead of spend.

Your “real interest rate” is the interest rate minus the inflation rate. In this case, you would make 2% on your deposited money. Although you earn a 5% annual interest rate, the price of goods and services increases by 3% due to inflation, leaving you with 2%. When looking at deposit interest rates, you also need to factor in inflation to understand how much money your deposit will really earn.

How Inflation Affects the Highest Interest Rates by Country

The true yield on an interest-bearing account must factor in the country’s inflation and currency. Here’s a look at the countries with the world’s highest interest rates on deposit accounts and the effects of inflation on those interest rates:

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Country Deposit Interest Rate Inflation Rate Difference
Zimbabwe 92% 269% -177%
Argentina 70.07% 83% -12.93%
Venezuela 36% 114% -78%
Moldova 19.5% 33.97% 14.47%
Uzbekistan 17.9% 12.2% 5.7%
Madagascar 13.75% 9.31% 4.44%
Hungary 12.5% 20.1% -7.6%
Georgia 11.81% 11.5% 0.31%
Uganda 10.05% 10% 0.05%
Brazil 10.03% 7.17% 2.86%
Egypt 9.1% 15% -5.9%
Source: Trading Economics

Top 10 Highest Real Interest Rates in the World

The real interest rate is the lending interest rate adjusted for inflation, as measured by an index called the gross domestic product deflator. The GDP deflator measures changes in prices. Here are the 10 countries with the highest real interest rates, according to the latest data from the World Bank:

Ranking Country Real Interest Rate (2021)
1 Madagascar 38.3%
2 Brazil 17%
3 Rwanda 13.1%
4 Timor-Leste 12.7%
5 Maldives 11.9%
6 Honduras 11.7%
7 Mozambique 11.7%
8 Gambia 11.2%
9 Butan 11.2%
10 Tonga 10.5%
Source: The World Bank

In the United States, the real interest rate was -0.90% in 2021.

How the US Banking System Compares

Most countries have central banks responsible for controlling the currency, much like the United States does. They also have both well-established banks and banks that are smaller and newer, similar to U.S. credit unions and small, local banks.

At the higher end of the spectrum, many U.S. banks offer high-yield savings accounts with an APY as high as 3.00%. Low interest rates in the United States are an indicator of stability — the highest current interest rates in the world come from highly unstable countries.

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In the United States, everything from your mortgage and car loan interest rates to your credit card interest rate is affected by the most basic of interest rates: the federal funds rate. If the federal funds rate rises, all other public and private rates will generally rise, too. This could mean the difference between your money earning interest against inflation in a savings account and your account losing money.

Proceed at Your Own Risk

Before you roll the dice overseas with dreams of double-digit interest gains, know that the international insurance protection on your deposits is likely not as comprehensive as FDIC deposit insurance.

Although foreign central bank interest rates might be higher, American banks protect your money either through FDIC insurance up to a certain amount or, in the case of credit unions, National Credit Union Administration insurance. If you make a savings deposit at an FDIC-insured bank, your deposit is insured up to $250,000. If you bank at a credit union that is insured by the NCUA, your funds are insured up to at least $250,000.

Advice

As with all investments and bank accounts, especially in developing countries, it’s important to weigh the amount of risk you’re willing to take on versus the return that you can expect. Although it would be great to earn nearly 10.00% APY on a savings account, it’s comforting to know that money you keep in American banks is fully protected in the event that your financial institution crumbles.

Cynthia Bowman, Ruth Sarreal, Jason Larkins and Cynthia Measom contributed to the reporting for this article.

Data was compiled on Oct. 27, 2022, and is subject to change. 

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Terence Loose is an award-winning freelance writer who writes about everything from travel and sport to fitness and finance. He is a Hawaii-based writer who has covered a broad range of topics during his 20-plus-year career, from finance and education to travel and celebrity. He is a former editor for both Movieline and COAST Magazines and his work has appeared in publications as diverse as COAST, Riviera and Movieline to the L.A. Times Magazine and Orange County Register.
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