WHICH COUNTRIES OFFER HIGHEST INTEREST RATES?

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FLHEAT

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If we consider only *developed* countries with stable currencies, where could one currently find the highest paying savings accounts and similar low-risk investment products?
Would it be possible for a non-resident to open an account in those countries?
Please share any interesting or helpful info on the subject.
Thanks!
 
Right now, you can get 4.75% in Australia, BUT, you are taking currency risk. That means your investment is in Australian dollars and will be converted back to US dollars in the end. If the US dollar loses value against the Australian dollar while your money is in Australia you will make more than 4.75%, but if the dollar strengthens, you could even lose money. Any time you invest outside the US you are taking currency risk.

http://www.rba.gov.au/
 
To add to what Steve said - not only do you take on currency risk, but you expect that your Aussie dollars will depreciate relative to American dollars. Remember that AUD/USD is an easily and widely traded currency pair and if you wanted AUD in two years, you have two choices - convert at spot rate and deposit in aforementioned 4.75% AUD notes or buy US 2-year notes and buy AUD forward in 2 years (second is costless to enter the trade). Since both of those are identical the forward contract is priced expecting that the AUD will depreciate. It will probably not depreciate as much as the forward says it will, but it will still probably depreciate and you will add currency vol to your "riskless" savings compensating for the gain on the carry trade.
 
One note of warning:
Consider Jamaica.
If you open a CD or a savings over there - the bank is not federally insured.
Yes, they may be paying 10% interest - but you are taking a risk.
If the bank collapses - which can happen you lose all your money.
It's not like in the US where cd's and savings are federally insured...
 
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