Here is a bit of and outside-of-the-box idea. Find a farmer with an operating line of credit and a good asset to debt ratio. Offer to pay off part their line of credit in change for them paying you the interest at prime -1/2 instead of the bank at prime +1/2. In Canada and the US prime is 4.25 so -1/2 should get you a better rate than a saving account with only slightly more risk. In Canada make sure the farmer has quota and you would want to find a "mailbox farmer" cash cropper in the States. to ensure you cash flows.
High interest rate money and easily accessible - where?
- Thread starter AshanD
- Start date
Quote from Medveshonok:
VneshtorgBank, Russia: 6-7% in US dollars and Euro
http://www.vtb.ru/pls/en/web_en.index1?s1=2
Hmm some "interesting" ideas to say the least. I like Med's suggestion though, I have heard some countries have much better interest rates than US banks. There must be a reason for this. Besides not being FDIC insured are there any other risks with keeping money in a russian bank?
I imagine exchange fees might sour this deal also.
Now this is thinking outside of the box!
I guess russian banks don't really need to be FDIC insured, because most of their customers - russian residents and they don't know what the FDIC is and what for it is
But there is another thing about funds insurance in Russia. Russian Centro-Bank created "the bank accounts insurance system"
To be included in that system banks must satisfy some financial criterias and Centro-Bank will guarantee safety of funds.
What about rates, they are as I said 6-8% in US $ and Euro, and 8-11% in russian roubles. Inflation for 2004 was 11,7% , so keeping money in bank just safe them from inflation and 11% interest rate is not high for Russia at this moment.
About dollar rates: beginning from early 1990's US dollar was the best thing russian people prefer to keep money in, rouble was nothing.. But last 3-4, especially last 2 years, because of extremely high oil prices the real effective rouble exchange rate strengthening compared to US dollar, Euro and other currencies.
For 2004 year rouble/dollar strengthening was about 9%.
Situation has changed, now people don't like dollars and prefer roubles, at least keeping money in roubles does not reduce their value.
So, no supply - higher rates. 6-8% in US dollars does not involve people, now we borrow money in roubles not in dollars.
Banks also prefer to receive money in dollars - it's more profitable for them.
I don't think that it's risky. You should choose a good bank, they will be glad to receive money for such a "high rate" and you will be happy too
But i'm afraid you can't open the account being in another country, you should make a trip to Russia to do this. You could clear this by asking bank directly.
Here are several links to another banks, that have a solid reputation in Russia:
http://www.alfabank.com/
http://eng.mbrd.ru/
Good luck )