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6 Bank Accounts That Earn Over 10% Interest

Wednesday, August 7, 2013 - 10:10 AM
From MarketWatch:
With the average savings account yielding 0.08% and the typical one-year certificate of deposit paying 0.24%, according to Bankrate.com, the old-fashioned approach holds little appeal. But in other countries, rates are as much as 100 times higher than in the U.S. — returns that would thrill stock market investors.   

Unfortunately, such rates are made possible in part by skyrocketing inflation, financial instability, central bank actions and currency fluctuations. And many of these yields are off limits to Americans, since some banks will only make accounts available to residents or people doing business in those countries.

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9
pearlbrownpearlbrown1,436 posts since
Nov 2, 2010
Rep Points: 6,264
1. Wednesday, August 7, 2013 - 3:44 PM
This is a good time to remind folks about EverBank's WorldCurrency CDs. These are available to people in the U.S., and many of these CDs have rates much higher than regular U.S. CDs. Of course, these have significant currency exchange risks. I've described these CDs and their risks in this blog post.

You can review the WorldCurrency CD rates for several nations at this EverBank page. One example is the Brazilian Real 3-month CD which has a 4.06% apy as of 8/7/2013.
4
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
2. Wednesday, August 7, 2013 - 5:04 PM
A few years back I had a 6-month EverBank CD that was comprised of a basket of currencies.  At maturity I ended up in the hole $37.00 due to the currency exchange rate. Lesson learned #238.
10
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,210
3. Thursday, August 8, 2013 - 9:37 AM
And, foreign banks are not FDIC insured -- which is why most people put their money is a bank in the first place, rather than something higher performing but lacking that protection. There might or might not be any similar backing by a foreign government, but even if so, maybe it is available to foreigners and maybe not, and even if it is, it is not necessarily at all as good as the FDIC protection for up to $250,000 per individual per account. 
6
me1004me1004370 posts since
Jan 16, 2010
Rep Points: 2,572
4. Thursday, August 8, 2013 - 7:45 PM
Just got my newsletter from EverBank World Markets, a division of EverBank.

Currency Returns for the "World Energy" CD for 6/13/2013-7/16/2013 = minus 3.44%.
4
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,210
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