Countries with highest real deposit rates in 2023
Your local bank may offer you a high nominal interest rate but you should ask yourself if the interest rate that you are getting is really high. The real interest rate equals the differences between the nominal interest rate and the inflation in your country. For example, if your bank offers you a 10% interest rate but the inflation in your country is 15%, the real interest rate would be -5% and you would be actually losing 5% of your savings per year. If that is the case in your country, it is much better for you to invest in tangible assets like real estate.
We analyzed the interest rates and inflation in the 20 major economies in 2023 and discovered the following:
- Real interest rates are negative in 11 (55%) of the top 20 countries
- Real interest rates are lowest in Turkey (-35.2%), Italy (-4.5%) and the United Kingdom (-4.2%)
- Real interest rates are highest in Brazil (9.6%), Russia (5.2%) and Mexico (5%)
- The average interest rate globally is 5.1%
- The average inflation rate is 6.5%
- Real interest rates globally are negative (inflation > nominal interest rates)
Based on the available information, we conclude that keeping your money in a fixed bank deposit is not a good idea unless you are located in a country like Brazil or Mexico.
Click here for the full image.
All Comments
Comment Not Found
Recent Blogs
