These 10 Countries Offer the Highest Interest Rates in 2024 (2024)

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Despite rising interest rates in the U.S., you won’t get rich by parking your money in a checking account or savings account. However, in a country with much higher interest rates, your cash could make a nice chunk of change just sitting in an online or brick-and-mortar bank.

See Also: 6 Genius Things All Wealthy People Do With Their Money

If you’re thinking about relocating, consider countries where you can earn substantial interest on online savings accounts or other types of deposit accounts where you can earn compound interest, 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 and how inflation affects those interest rates or real interest rates.

The Highest Bank Interest Rates in the World

Checking, savings, money market accounts and CD interest rates in the United States have improved but are still low. According to the FDIC, the national average interest rate for traditional savings accounts is 0.47% annual percentage yield, or APY. Here are some key takeaways:

• Many countries outside the United States offer better rates on savings and other deposit accounts.
• There are risks to opening an account in other countries including unstable governments and economies.
• There may be fewer account regulations on rate cuts, attached debit cards, minimum deposits, minimum balance requirements or minimum opening deposits.
• The FDIC only insures domestic deposits, and some countries have protection that is much less developed.
• The real interest rate, which is the interest rate minus the inflation 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.
• In the United States, the real interest rate was -2.93% in 2024.

The Highest Deposit Interest Rates Worldwide

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 has fallen to 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.

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5 Countries With the Highest Savings Rate (the U.S. Isn't Even Close)

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.

Inflation vs. Interest Rates and Real Interest Rates

The true yield on an interest-bearing account must factor in the country’s inflation and currency. Keep in mind that the real interest rate, which is the interest rate minus the inflation rate, is the lending interest rate adjusted for inflation. 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:

Source: Trading Economics

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.

Although some U.S. banks, especially online banks, offer high-yield savings accounts with an APY of 4% or more, the average national rate is just 0.39%. 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.

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 effectively 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.

Final Take To GO

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 over 10.00% APY when you open a high-yield savings account, it’s comforting to know that the money you keep in American banks is fully protected if your financial institution crumbles.

Terence Loose, Cynthia Measom,Cynthia Bowman,Daria Uhlig,Ruth SarrealandJason Larkinscontributed to the reporting for this article.

Data was compiled on March 20, 2024, and is subject to change.