Countries Offering the Highest Bank Deposit Rates in the World (2013 Edition)

Over the past 10 years, consumers have watched their dollars earn less and less, as deposit rates plummet. It’s nothing short of frustrating, especially for investors on a fixed income. This leaves many investors, fed up with low earnings, turning abroad for higher yields on their investment dollars.

However, before cashing in on higher APYs, consider a couple important factors, such as country risk and inflation rates.

[Learn more about the risks and rewards here.]

Higher Deposit Rates, Higher Risk 

Worldwide, several countries are offering very attractive deposit rates. Here’s a list, including their potential risk:

Ukraine: This country offers a max APY up to 18.5 percent as of September 2012. However, this country scores 78^th for risk. Also, inflation is at 9 percent.

Iran. Like Ukraine, Iran offers a high max APY of 18.03 percent, as of July 2012. The country’s risk rank is even higher, scoring 127^th for risk. Inflation is at 22.5 percent.

Bangladesh. This country, located in Asia, offers a 12.5 percent max APY, as of April 2012. The country, however, scores 98^th for risk with an inflation rate of 10.7 percent.

Sri Lanka. Like Bangladesh, this country offers a 12.5 percent maximum APY. It ranks 66^th for risk and has a 7.7 percent inflation rate.

Higher Deposit Rates, Lower Risk 

With major economies, APYs tend to be lower. However, the risk rating and inflation rates for these countries are lower. Take a look:

Australia: This country offers a max APY of 5.10 percent as of September 2012. Inflation is 3.4 percent and country risk rank is 10^th.

China. China has a current max APY of 3.3 percent as of September 2012. The country’s risk rank is 36th and inflation is 5.4 percent.

United Kingdom. Like Australia, the United Kingdom has a low risk, scoring 7^th. Inflation is only 4.5 percent. The country has a maximum APY of 3.10 percent as of September 2012.

Canada. This country offers a maximum APY of 1.05 percent with a risk rank of 17^th. Inflation is relatively low at 2.8 percent.

Open a Foreign Bank Deposit (FDIC Insured)

How Does the U.S. Compare? The U.S. offers a maximize APY of 1.05 percent as of September 2012 and rank is 17^th for risk. Inflation is at 3 percent.