In this article, we’re tackling “which bank has the highest interest rate for fixed deposit?”
But before sharing the answer, we want to remind you of a core concept when it comes to opening international, offshore, and private accounts:
If you are an attractive customer to the bank, everything is negotiable – including the interest rates you can receive on fixed deposits.
If you want to see which countries have higher interest rates right now, you can click here and see our free guide that breaks down the options for you.
Otherwise, keep reading to see which bank has the highest interest rate for fixed deposit below.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Which Bank Has the Highest Interest Rate for Fixed Deposit?
- Where Can I Find the High-Interest Rates on a Fixed Deposit?
- What to Know About Fixed Deposit Rates
- Frequently Asked Questions
- Ready to Explore Your Options?
Which Bank Has the Highest Interest Rate for Fixed Deposit?
The banks with the highest interest rate for fixed deposit are offering between 4% and 12%, depending on the country and currency of the deposit. For example, many South African banks are offering above 10%. However, deposits are held in South African Rand, which has lost 30% of its value over the last five years compared to the US dollar and other major currencies.
As a result, we generally suggest that South Africans (and individuals from similar countries and economies) consider opening international accounts in stable markets with sound currencies.
In other words, if you are a South African trying to determine which bank has the highest interest rate for fixed deposit, you should probably be looking to open accounts overseas instead. Not only does this offer protection against the weakening of the Rand, but it also gets your money into more stable economies.
With this in mind, we have published an Advanced Banking Report, dedicated to helping South Africans legally open and fund international and offshore bank accounts. It’s called “Offshore Banking for South Africans: Open Accounts and Legally Move Money”.
That said, South Africans aren’t the only ones trying to determine which bank has the highest interest rate for fixed deposit. Likewise, they are not the only ones dealing with weak economies, governments, or currencies. In fact, these problems seem to be impacting many countries, which means many individuals are looking for higher returns with safe banks just to combat inflation.
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Where Can I Find High-Interest Rates on a Fixed Deposit?
As we share in the free guide linked above, there are a number of countries that offer significantly higher interest rates than you can find in your home country.
But, it’s important to remember that interest rates are typically high because the cost of borrowing is also high. And, the cost of borrowing is usually high for a reason. Those reasons can include systemic problems with an economy or currency, more risk in the business environment, or a reflection of central bank policy.
With this in mind, here are the countries that we take a detailed look at in the free guide.
Jurisdictions With High-Interest Rates
- Panama
- Georgia
- Mongolia
- Armenia
Of course, you may want to consider lower interest rates while accessing more stable banks by opening accounts in jurisdictions like the United States, United Kingdom, European Union, or select offshore countries.
What to Know About Fixed Deposit Rates
One of the most important things to know about fixed deposit rates is that the rate offered doesn’t usually keep pace with inflation. In other words, if you open an account locally and get offered a 5% annual rate, inflation is likely higher than (e.g. 7% to 10%).
That said, many individuals look to open accounts in countries offering high-interest rates where they are not exposed to inflationary pressures. This might include an individual looking to open a fixed deposit in Mongolia but not having any Tugrik financial obligations. In other words, even if inflation is running high in Mongolia, their personal buying power in their home country doesn’t change.
Of course, there are risks in opening accounts in countries offering such attractive rates. Not the least of these risks is the possibility of the bank you choose failing. And, while jurisdictions like the United States, United Kingdom, and the EU have sufficient regulation and deposit insurance, places like Mongolia remain untested.
Benefits of Fixed Bank Deposit Rates
Let’s take a look at the benefits of a fixed bank deposit to help you decide if this is the best option for you.
- Higher interest rates
- Guaranteed returns on deposit
- Ability to manage liquidity with staggered terms
- Ability to arbitrage between jurisdictions
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking into which bank has the highest interest rate for fixed deposit. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Which Bank Gives 7% Interest on Savings Account?
Many banks give 7% interest on fixed savings accounts. In fact, there are many banks around the world that even deliver double-digit interest rates. That said, these banks are typically found in jurisdictions with weakening banking sectors, weak regulation, and limited ability to attract outside capital. As a result, these banks are not the best fit for most international clients looking to increase their returns.
Which Bank Is Best for a Fixed Deposit for 1 Year?
The bank that is best for a fixed deposit for one year depends on your risk tolerance, the currencies you are willing to hold, and how exotic you want to go when it comes to jurisdictions.
For example, many people want higher interest rates, but when it comes time to choose between Mongolia or Georgia, they decide they need something more stable.
That’s why, in many situations, individuals choose to open accounts in a banking jurisdiction like Panama, where there are strong banking options, a strong currency (USD), and banks still offer attractive rates.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.
