The most profitable deposits are offered in the CIS countries, particularly Russia and Byelorussia, as well as in Ukraine, where domestic and foreign currency deposit rates account for 12-18% and 8-12% per annum respectively. These are followed by high deposit rates in Iran, Vietnam, Mongolia and Argentina. Although foreign currency deposit rates are constantly changing in these countries, they remain persistently high, making up about 10-12%.
Assessing the dynamics of deposit rates and comparing it with the current state of the country's economy, some financial analysts found that colossally high rates are often observed before a crisis. For example, it happened in Ukraine at the end of 2012, and households could deposit their money with banks at the 27% and 15% annual interest rates in grivnas and dollars respectively.
In fact, the grivna fell 40% at the start of 2014 and this collapse shocked the financial system. It was like being a passenger on a plane that was crashing, but you had no way out of the plane.
By comparison, deposit interest rates in the United States, Canada and the United Kingdom are 1.05%, 2% and 1-2% respectively. As a rule, 3% is the interest rate ceiling for all banks in the U.S. and developed countries of Western Europe where the deposit is seen not as a means of enrichment, but the most available method of safekeeping cash. At the same time, Serbia's banks offer the highest deposit rates in Europe reaching 10%.
Not surprisingly, rich Europeans keep money in banks, despite the low rates. This is the reliable method because many financial institutions have been operating there for over 150 years.
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