Interested in interest

[John Doe]

I read that Argentina banks are paying 23.70 % interest on savings accounts. That's about 22.60 % more than EEUU banks.
What's the catch ?.

 

[Rich One]

I read that Argentina banks are paying 23.70 % interest on savings accounts. That's about 22.60 % more than EEUU banks.
What's the catch ?.

No catch .. elementary, deduct the yearly inflation and you earn perhaps the same, or less than in the EEUU... If the Inflation exceeds 23.7 % correct you lost money

 

[jbeas176]

john doe, its probably bad info. government bonds before the election were going for 10%. after the election with macri cleaning up the volcher fund problem, the new bonds sold at 7%. i am no finanical guy but that would be very high risk money. Savings and loan of 1986 or like mexico before that.

 

[RandomS]

I read that Argentina banks are paying 23.70 % interest on savings accounts. That's about 22.60 % more than EEUU banks.
What's the catch ?.

I guess you heard about fixed deposits, and not regular savings accounts. As Rich One has mentioned, you won't win much because of inflation.

 

[jbeas176]

thanks guy’s. F D I C not insured. in the eeuu the government backs the banks approved by them. You might be investing in a subprime lending bank. no promise of return if all goes bad.