For those looking to grow their wealth while keeping it secure, high-yield savings accounts have become a popular option.
Unlike traditional savings accounts that offer meager interest rates, high-yield accounts provide far higher returns – especially if you’re willing to explore international banking options.
As inflation remains a concern worldwide, finding a bank that offers competitive interest rates becomes essential.
The good news? Many countries, particularly in emerging markets, offer high-yield savings opportunities that can far exceed what domestic banks in your home country provide.
Let’s explore five excellent options for offshore high-yield savings accounts – from Georgia to Mongolia!
Georgia
Georgia has emerged as a top destination for high-yield savings accounts, thanks to its investor-friendly banking system and straightforward account-opening process.
The two largest banks in Georgia, TBC Bank and Bank of Georgia, both trade on the London Stock Exchange, underscoring their reputability and stability.
Interest rates in Georgia are notably high. TBC Bank offers rates of 10% on one-year term deposits, while Bank of Georgia provides an even higher rate of 11.25%.
Smaller banks like UAE-owned Terabank also compete aggressively, offering 10.50% for 12- to 14-month deposits.
Opening a bank account in Georgia is remarkably easy. Tourists can open accounts with no minimum deposit, although interest rates are usually a bit better for residents.
The whole process can be completed in as little as two days. Online banking services are also excellent here in Georgia!
While visiting Georgia, you’ll also enjoy its stunning landscapes and world-class cuisine, making the banking experience even more worthwhile.
Opening a bank account in Georgia is relatively easy, even for a tourist. Most banks also offer internet banking or mobile application services that makes managing the account from across the globe possible.
Armenia
Just south of Georgia, Armenia is another excellent choice for high-yield savings accounts.
Armenian banks offer some of the highest interest rates in Europe, particularly for deposits in the local currency, the Armenian dram.
For example, Evocabank, a smaller but growing institution, pays 10.5% on one-year term deposits in dram.
If you prefer to deposit in US dollars, you can still earn a respectable 5% on two-year deposits.
The Armenian dram has been one of the best-performing currencies against the US dollar in recent years, appreciating by 23.9% since 2020.
This currency strength, combined with high interest rates, makes Armenia an attractive option for savvy investors.
Opening an account in Armenia does require a bit more paperwork, including a translated passport. However, the process is straightforward and affordable if you work with a lawyer.
Cambodia
Cambodia offers a unique mix of high-yield savings opportunities and exotic appeal.
The country’s banking sector is growing rapidly, as are the number of expats choosing to live and retire in Cambodia. Local banks like ABA and Acleda Bank offer competitive interest rates.
For example, ABA Bank pays 4.25% on US dollar deposits for one- and two-year terms. If you’re willing to deposit in the local currency, the Cambodian riel, you can earn even more – up to 5.75%.
Korean-owned Woori Bank, which operates as a microfinance institution, offers even higher rates, paying 7.25% on US dollar deposits.
Cambodia is another country that offers high yields saving account – the only country in all of Southeast Asia to have such option.
While the riel is not as widely used as the US dollar in Cambodia, it remains stable, making it a relatively low-risk option for deposits.
To open a bank account in Cambodia, you’ll need to visit the country and obtain a long-term business visa that’s valid for six months to a year.
The process is easy enough, and once your account is set up, you’ll enjoy high returns in a dynamic and rapidly developing economy.
Mongolia
Mongolia is an unconventional but highly rewarding choice for high-yield savings accounts.
Banks in Mongolia offer some of the highest interest rates in the world, particularly for deposits in the local currency, the Mongolian tugrik.
For example, Khan Bank pays 11.2%, while Golomt Bank offers an even higher rate of 12.4% for term deposits in tugrik.
However, there are some challenges to banking in Mongolia. English is not widely spoken, and the banking system is not as user-friendly as in other countries like Georgia.
On top of that, the tugrik has been volatile in recent years, so there is a degree of currency risk involved.
Yet despite these challenges, Mongolia still remains an attractive option for more adventurous investors who are seeking higher returns.
Turkey
Turkey is a regional powerhouse with a dynamic economy and a banking sector that offers competitive interest rates.
Turkish banks provide high-yield savings accounts for both residents and non-residents, making it a viable option for international investors.
Interest rates on lira deposits can exceed 10%, depending on the term and bank.
Major Turkish banks like Garanti BBVA and Akbank are known for their reliability and offer a range of savings products.
While the Turkish lira has faced significant depreciation lately, this also means that foreign investors can take advantage of favorable exchange rates when entering the market.
Recent news shows that inflation in Turkey is slowing, and the lira’s worst days could be behind it already.
Opening a bank account in Turkey requires a visit to the country and a tax identification number, which is relatively easy to obtain as a foreigner.
Why Consider International High-Yield Savings Accounts?
Exploring international high-yield savings accounts offers several advantages:
- Higher Returns: Interest rates in emerging markets are often double or triple those of Western banks.
- Currency Diversification: Depositing in foreign currencies can provide a hedge against economic instability in your home country.
- Global Opportunities: Banking internationally allows you to take advantage of stable and growing economies around the world.
Contrary to common misconceptions, offshore banking is legal. Depending on the country, it’s often even safer than domestic banking.
Indeed, high interest rate accounts in countries like Georgia and Cambodia are an excellent way to grow your wealth while diversifying your financial portfolio.
While each place has its unique risks, the potential for significantly higher returns makes them worth considering for the right type of globally-minded investor.
FAQs: Offshore High Yield Savings Accounts
Are Foreign Banks Safe?
Yes, foreign banks can be safe, but the level of safety depends on the country and the specific bank. For example, Singapore and Hong Kong are renowned for its stringent banking regulations, which require high levels of capital for deposit protection, making it one of the safest banking jurisdictions in the world.
On the other hand, offshore banks in some jurisdictions may lack the same level of regulatory oversight, which could make them riskier.
What Are the Best Countries to Open a High-Yield Savings Account?
Some of the best countries for high-yield savings accounts include Georgia, Armenia, Cambodia, Mongolia, and Turkey. These nations offer competitive interest rates, often significantly higher than what’s available in Western countries.
For instance, Georgia’s TBC Bank offers rates of 10%, while Armenia’s Evocabank provides 10.5% on deposits in the local currency.
What Country Has the Safest Currency?
The Singapore Dollar (SGD) is widely regarded as one of the safest currencies in the world. Singapore’s global reputation as a financial hub, stable economy, and robust financial system make its currency a secure choice for investors.
Additionally, the Swiss Franc (CHF) is another strong contender for safety, backed by Switzerland’s long-standing political neutrality and its well-regulated banking system.
