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> While Americans are typically earning less than 1 percent interest on their savings accounts > If somebody offers you a guaranteed 7 percent on your money fo
by lusr 14y ago
> While Americans are typically earning less than 1 percent interest on their savings accounts
> If somebody offers you a guaranteed 7 percent on your money for the rest of your life, you take it and just make sure the guy’s name is not Madoff.”
It's funny seeing this. I get 5.15% p.a. on my 24 hour notice money market deposit account at my local bank (http://www.nedbank.co.za/website/content/interrestrates/local.asp http://www.nedbank.co.za/website/content/interrestrates/loca...). High interest rates are one thing I enjoy about living in South Africa.
- throwaway1979 14y agoIn US dollars, it is a big deal. According to my Macroeconomics course, the market is pricing in your local currency to fall relative to the US dollar. Otherwise, such an discrepancy cannot persist.
- jonp 14y agoAlthough you also "enjoy" inflation of over 6% pa. In both the US and SA returns are lagging behind inflation by around 1% pa.
- lusr 14y agoThat's deceptive. Inflation over which goods? As an upper-middle class income generator, inflation doesn't affect me in the same proportion as it does the lower income class, for instance.