Ok so the average savings account in brasil will give you interest monthly and at a rate of about 0.7%. a typical american savings account will be at 4.0 APY? which I think is about .33% pre month. If my calculations are correct why would an emerging/3erd world country havea better paying savings then all powerful US economy?
also, why dont US saving accounts pay interest monthly?
thanks!
2007-03-22 14:48:33 · 5 answers · asked by J. 3 in Business & Finance ➔ Investing
People don't trust the Brazilian money. It's been periodically devalued.
You also have to factor in the real interest rate - interest rate minus inflation rate.
2007-03-22 16:17:40 · answer #1 · answered by Quixotic 3 · 0⤊ 0⤋
You are confused.
The United States of America is the poorest country in the World.
You are not really rich if you have a Black American Express with $10,000,000.00 USD in debt.
Apply the same thing to the entire country but use TRILLIONS IN DEBT.
Brazil is the biggest producer of Oil in the World.
Have you seen something made in the United States of America lately besides Nissan, Toyota, Honda, Renault, Suzuki, Kia or Chrysler cars?
2007-03-24 03:48:17 · answer #2 · answered by Anonymous · 0⤊ 2⤋
Higher inflation in Brazil and US savings accounts do pay interest monthly...
2007-03-22 22:05:26 · answer #3 · answered by BosCFA 5 · 0⤊ 0⤋
Rich Brazilians who have money to invest would probably put their money in the States, if the local interest rates were not attrative. In Brazil it's expensive to borrow money , so the banks have to justify their expensive lending rates.
2007-03-24 16:29:55 · answer #4 · answered by nonconformiststraightguy 6 · 0⤊ 0⤋
I think it is because Brazil has much higher inflation. You'll actually be losing money if you have money sitting in the bank in Brazilian currency.
2007-03-22 21:58:32 · answer #5 · answered by Julian A 4 · 0⤊ 0⤋