Comparison of some Global Deposit Rates

At our main web site of BankINTRODUCTIONS.com, the theme of our site is mitigating currency risk. Let's take a quick look at some examples of deposit interest rates.

United States  USD zero to 1.05% range

Canada   CAD   0.15 to 2.3%

United Kingdom GBP  up to 2.5%

Turkey   lira  10%

India  rupee  4.5 to 7% (7 days to 10 year term)

Singapore  SGD 0.1 to 1.45% (12 month deposit)

Hong Kong  HK  0 to 0.2%
                     Yuan deposit  3.8% for 12 month term

Switzerland  CHF zero
                      EUR deposit zero

In Switzerland, a handful of private banks charge negative interest rates. That is, the customer pays the bank to hold their monies unlike positive interest rate framework whereby the customer would earn deposit interest. Negative rates are usually found on large deposits such as 100,000 CHF or
1 million CHF for example. Negative rates vary from - 0.125% to - 1%. The thinking here is that negative rates will force the customer to move monies over to the private banks wealth asset management services where the bank earns management fees and can help promote some of their own financial products. Negative interest rates have helped to fuel large demand for safety boxes and personal safes for individuals to store cash and avoid paying interest to a financial institution.

The above examples of deposit rates clearly show the importance of selecting the correct currencies to help mitigate currency risk as interest earned on deposit is very minimal in many industrialized first world economies.

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