GlobalBanks Interest Rates Index

Last Updated Dec 31, 2019

GlobalBanks Interest Rates Index provides data to help users find the highest interest rates in the world that are currently available.

We highlight the opportunities that exist for depositors, despite continued downside pressure on interest rates at banks.

At present, we only include those countries that have confirmed data in the last reporting year for all listed indicators. The index will be updated as we expand our database and as new data becomes available.

For further information on data and methodology, please click here.

GlobalBanks Interest Rates Index

wdt_ID Country Inflation Deposit Interest Rate (%) Local Currency Deposit Interest Rate (%) US Dollars
1 Zimbabwe 161,80 2,53 3,50
2 Turkey 15,70 23,35 3,00
3 Mongolia 9,00 12,44 5,40
4 Ukraine 8,70 11,78 4,25
5 Pakistan 7,30 5,23 0,55
6 Russian Federation 4,70 5,36 1,76
7 Georgia 4,20 8,83 3,50
8 Romania 4,20 1,30 0,20
9 Sri Lanka 4,10 8,85 3,50
10 Tanzania 3,60 8,20 1,30
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Products That Deliver the Highest Interest Rates in the World

There are many different types of “deposit products” out there that can help you earn some of the highest interest rates in the world. But, when looking for these rates, it’s important to know the terms and restrictions you’re signing on for before committing your cash.

Depending on where you are in the world, the language used to describe interest-bearing deposit products may differ.

For instance, fixed term deposits, certified deposits, or time deposits are all the same thing. 

Before we get started, it’s important to understand that almost all fixed deposit products work the same way…

You agree to deposit your money with the bank for a fixed period. In exchange, the bank agrees to pay you an interest rate for doing so. You agree to specific restrictions and penalties if you pull your money out early. Then, you make a deposit.

If you have any questions, just send us a message or hit the chat button below. 

Here are the different types of deposit products that you should be aware of:

Savings Deposit

If you’re looking for the highest interest rates in the word, a basic savings account won’t cut it. After all, that’s all it is, an account where you can deposit money for the purpose of saving. These typically have painfully low interest rates, offer few incentives, and some banks even restrict the number of withdrawals you can make per month. 

Savings accounts are only suitable for people looking to store their cash in an easily accessible account at a low interest rate and who don’t care about the value of their cash eroding via inflation. In exchange for having your cash easily accessible, you get a lower interest rate.

In almost all instances, one of the deposit products below will give you a higher interest rate and better return on your cash.

Short-Term Deposit

Term deposits can be set for any length of time. But short-term deposits tend to last between 1 to 12 months. For this reason, they tend to have lower interest rates, not much higher than those offered by banks on basic savings accounts. 

Short-term deposits are typically suitable for individuals who are not willing to lock in their funds for a long period of time. Instead, by keeping your money in a short-term deposit, you can maintain short-term liquidity while still generating a small return on your money.

Long-Term Deposit

Long-term deposits tend to last between 1 and 5 years. And if you’re looking for the highest interest rates in the world, this is probably what you’re after. These are only suitable for those with long-term savings goals. If there’s a possibility that you’ll need access to your deposited funds during that period, you should consider a short-term or demand deposit (see below) instead. 

Carefully review the restrictions, penalties, and terms before depositing your cash. The penalties for withdrawing your money from the long-term deposit early can be high, wipe out any returns you made, and in some instances even eat away your initial principal. 

These long-term deposits tend to be favored by those who have already retired, are looking to generate stable fixed income from a relatively safe institution, or are simply looking to diversify.

Demand Deposit

Demand deposits are exactly what they sound like, they give you the ability to demand your money whenever you want it. Naturally, because you have the flexibility to withdraw your money whenever you want, you’ll receive a much lower interest rate.

However, interest rates for demand deposits tend to be slightly higher than the standard savings account. The reason for this is that these demand deposits tend to be offered to those willing to deposit a larger amount of funds, making it attractive for the bank to offer them in the first place. But these products won’t make the cut if you’re looking for the highest interest rates in the world.

For instance, if you’re planning to buy a properly for $300,000 and transferring that amount to your bank account before sending it on to the seller or escrow – your banker might suggest putting it in a demand deposit so you can earn a higher interest rate and cancel out any fees that you’ll incur for the transaction.

Other Products

Depending on which country you’re opening an account, there might be additional variations of term deposits on offer. These can include any of the following:

  • Variable rate
  • Brokered
  • Zero-coupon
  • Index-linked
  • Low balance

Risks With the Highest Interest Rates in the World

highest interest rates in the world feature

Like any decision, deposit products are not without risk, both direct and indirect. The following are just a few of the deposit product specific risks that you should consider when looking for the highest interest rates in the world.


When opening a deposit account, you’re committing to leaving your funds in the bank for a fixed period of time. If, later on, you decide to withdraw that money, you’ll likely incur a penalty.

In some instances you might be able to avoid being penalized for withdrawing your funds early. But this usually requires that you open a no-fee or demand deposit account with the bank at the outset. 


Inflation can be a serious concern for depositors, especially if your deposit is denominated in local currency and in a high inflation economy. Inflation can dramatically reduce your principal and leave you with less money than you started with. This is one of the major reasons why we recommend opening USD or EUR denominated deposit accounts (unless, of course, you understand the market dynamics and know the local currency and economy well).

If you open a deposit accounts in developed, first-world countries, inflation can still be a problem because interest rates can be very low. In fact, banks in some Western countries even have negative interest rates.  With this in mind, it’s even more important than ever to understand the benefits of international banking and how you access higher interest rates overseas.

Country & Bank Risks

Keep in mind, penalties for early withdrawal will depend on the bank and the specific terms and restrictions for the deposit product you choose. Before placing money with any bank, understand country risk and any underlying bank-related risks that could potentially impact your deposit. 

You can determine for yourself if the bank, country, and currency are suitable for you by following the steps that we outline in the Ultimate Guide to Offshore Banking, which you can find here.

How the Highest Interest Rates in the World Get Set

highest interest rates in the world how they are set

The interest rate that a bank assigns to different deposit products varies. That’s because, from the bank’s perspective, they want to lock in the longest term and the highest amount for each deposit possible. So naturally, the bank will award the highest interest rate to higher deposits and longer terms. 

But as the lender committing to deposit money into the bank, you need to be comfortable with a few key factors to make sure the interest rate makes sense for you as well. Even if you’re after the highest interest rates in the world, you still need to make sure that rate makes sense for the risk you’re assuming.

Such factors include the quality of the borrower (the bank), the volatility of the currency being loaned, the frequency of the coupon (interest payments), and the term of the loan.

In most countries, banks are given guidance on what these rates should be set at by the central bank or regulator. From there, banks make adjustments up or down depending on their internal policies and what they think the market will accept. This is why you see different rates at different banks in the same country.

Here is a quick break down of the key inputs that countries, banks, and you (should) use when considering interest rates:

Quality of the Borrower

When considering deposit interest rates, the borrower is the bank. But because the bank lives and breaths within the local economy and banking sector, these must be taken into consideration as well. 

Banks are exposed to a host of economic and political factors, so understanding the underlying fundamentals of a country is vital.  It can be the difference between lending your cash into a bankrupt nation (or failing banking sector) or making an easy 6%. 

Learn how to navigate country risk and avoid risky banks by uncovering some of the lesser-known strategies in the free Ultimate Guide to Offshore Banking or by contacting our team directly if you’re a GlobalBanks Insider. This is the first step in accessing the highest interest rates in the world.

Currency Volatility

Many people look at country’s deposit rates for the local currency and get excited. 

They proudly proclaim, “In Mongolia, I can earn 12%  on a fixed deposit!”

That said, most people forget that interest rates aren’t real unless you also consider inflation. After all, there is a reason why certain countries offer the highest interest rates in the world.

Yes, in Mongolia you can capture attractive interest rates. But that’s in the local currency, the Mongolian Tugrik, which is extremely volatile and prone to massive swings. And, inflation is currently sitting at 9%.

That’s why the above table highlights both interest rates and inflation, so you can see how much value your money will lose while it’s earning interest. 

In general, we don’t recommend fixed deposits in local currencies, not unless you have advanced knowledge of an economy and can assess the risks for yourself. 

If you’re interested in making fixed deposits abroad to capture higher interest in the world, consider US dollar products. Most banks are keen to attract USD or EUR deposits, and they offer far better rates compared to what you’d earn in your home country.

Sticking with our Mongolia example, you might not get 12% on a USD deposit, but you can easily capture up to 5% at some of the biggest banks in the country. How does that compare to your account in New York?

Coupon Frequency

Most banks pay on a monthly or quarterly frequency. But this can vary depending on the bank and country you’re in. Depending on the deposit product you choose, you might only receive interest payments every 6 months or annually. In instances where a longer term is agreed to, the interest rate will usually be higher.

Term of the Loan

This refers to the time period that you plan on “locking in” your deposit for. This can be for a fixed term ranging from months to several years.

If you agree to a fixed term deposit, you technically still have the option to withdraw the funds deposited early. But, you’ll have to high penalty fees if you do. With this in mind, it’s important to review the restrictions, penalty fees, deposit agreement before agreeing to lock up your money.

If you open a demand deposit instead, you won’t pay any penalty fees for an early withdrawal, but the interest rate applied to your deposit will be significantly lower.

Countries Offering the Highest Interest Rates in the World

You can learn more about the deposit rate opportunities currently available in the following articles. And keep checking back as we continue to write new articles that focus on how to capture the highest interest rates in the world.


Countries Listed: The countries presented in the GlobalBanks Interest Rates Index include those that have complete data for the most recent reporting years for each indicator. As new data is acquired, either by release or primary source research, the indicators and the table will be updated.

Inflation: Inflation is measured by the annual growth rate in the consumer price index (CPI), which is defined as the change in the prices of a basket of goods and services that are typically purchased by households in the country.

Deposit Interest Rates (%) Local Currency: This reflects the deposit interest rates in individual countries in the country’s local currency. This is the rate paid by commercial banks for demand, time, or savings deposits in each country at the time of reporting. The terms and conditions attached to these rates differ by the country where they are being offered.

Deposit Interest Rates (%) US Dollars: This reflects the deposit interest rates in individual countries in US Dollars. This is the rate that we expect commercial banks to pay for demand, time, or savings deposits in each country at the time of reporting. The terms and conditions attached to these rates differ by the country where they are being offered.

Data Sources & Disclaimer: To prepare this index, GlobalBanks has used verified data from trusted international sources, including the International Monetary Fund, International Financial Statistics, and data files; however, this data can vary from time to time. Therefore, while we have sourced these figures from reputable internationally accepted sources we cannot be responsible for their accuracy.

You should always take the time to confirm interest rates and other details of material importance for yourself before considering opening accounts. If you have any questions, please feel free to contact our team using the chat feature on the website.

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