17 Countries with Highest CD Rates in 2024

In this article, we will discuss the 17 Countries with Highest CD Rates in 2024. You can skip our detailed analysis, and go directly to the 5 Countries with Highest CD Rates in 2024.

A certificate of deposit (CD) is a form of savings account that pays a fixed interest rate on funds maintained for a specified length of time, which can range from a few months to several years. CDs are offered by banks as well as credit unions. Unlike regular savings accounts, CDs have a requirement that the CD funds be maintained untouched for the duration of the account, or else there will be a penalty. The primary benefit of certificates of deposit is that they typically offer a higher interest rate than savings accounts, in exchange for sacrificing your flexibility in withdrawals. For investors wishing to diversify their portfolio with comparatively low-risk assets, CD is an excellent instrument.

The global Certificate of Deposit market is anticipated by Verified Market Reports to reach $6.20 trillion by 2024, with a CAGR of 4.5% from 2019 to 2024. Owing to the increasing demand for safe investments, the global certificate of deposit industry has been booming rapidly. This has resulted in the launch of innovative products, such as those with higher rates or longer maturities, as well as the attraction of new investors with an eye on larger, higher returns in the short- and long-term. It is projected that the market for CDs will persist as more investors are intrigued by this trustworthy savings option.

The growth of the global Certificate of Deposit market is being driven by several factors, including a growing preference for fixed-income investments and increased investor awareness of the asset class’s merits. Its attractiveness is further enhanced by the low correlation between the returns of this asset class and the capital markets, which contributes to its attraction. In addition, it is anticipated that the market will keep expanding in the coming years due to rising demand for attractive yields and the scarcity of traditional safe-haven investments like government bonds.

In Europe, the European Central Bank’s (ECB) monetary policy has had a significant role in the growth of the CD market. The ECB’s low-interest rate policy has pushed banks to provide competitive CD rates, resulting in increased demand. The rapid growth of the CD market has also been significantly aided by the economic recovery of the European Union (EU).

Currently, there is a growing phase in the North American Certificate of Deposit (CD) industry. The robust economy, a solid banking system, and low interest rates have all aided in the expansion of the CD market. 

According to CNBC, despite the possibility of a Federal Reserve interest rate reduction, 2024 is expected to be a beneficial year for savers seeking higher returns on cash assets. Experts advise locking in CD rates right now for the best returns because interest rates are probably about to peak. However, individuals should analyze their liquidity needs and consider maintaining a liquid emergency fund before investing in CDs. 

On the other hand, as per Forbes prediction, CD rates might be leveling off. The Federal Open Market Committee (FOMC) hiked interest rates again in July 2023, bringing them up to a range of 5.25% to 5.50%. Nonetheless, the Federal Reserve has maintained the present federal funds rate target range in all of its meetings since that time. Even though the Fed is closely observing inflation, more rate rises don’t seem likely. 

When determining the rates on savings and lending products, banks typically refer to the federal funds rate. Generally speaking, CD rates at most banks tend to go down as the federal funds rate goes down, and they are likely to go up as the federal funds rate does. Many customers are concerned about whether the money they have in CDs is as safe as advertised in light of recent bank collapses. The good news is that up to $250,000 in bank deposits are covered by the Federal Deposit Insurance Corporation (FDIC) for each depositor, type of account owner, and financial institution. To draw in new business and encourage their current clientele, certain banks have increased rates during this unsettling time.

Based on FDIC data, the average annual percentage return, or APY, for a one-year CD was as low as 0.13% in January 2022, which is considered a pandemic low. The average rate for a one-year CD is 1.83% as of February 2024. Similar gains in value were observed for other CD terms within the same period, such as two-year and five-year CDs. For the former, the average rate went from 0.17% to 1.54%, and for the latter, it went from 0.28% to 1.40%. While current averages may not seem spectacular, the greatest CD rates currently exceed 5.50% APY for one-year CDs, 5.00% APY for two-year CDs, and 4.65% APY for five-year CDs.

One might question if CD rates are impacted by inflation. As per Forbes, inflation indirectly affects CDs, but it usually does not cause them to rise. Instead, the Federal Reserve combats inflation by raising the federal funds rate. Furthermore, as the federal funds rate is the benchmark interest rate for the whole economy, CD rates often rise in response to increases in the Federal Reserve’s benchmark rate.

Major players in the certificate of deposit market are well-known for their enduring influence and solid reputations. A few notable examples are JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corporation (NYSE:BAC).

JPMorgan Chase & Co. (NYSE:JPM) ‘s Chase Bank provides both regular and relationship interest rates on CD accounts. Customers who have a linked Chase personal checking account are the only ones eligible for relationship rates. Regardless of term length or CD balance, all standard-rate CDs now have a $1,000 minimum opening deposit requirement and yield a 0.01% interest rate.

JPMorgan Chase & Co. (NYSE:JPM)’s Chase CDs generate daily interest, and you can receive it monthly, quarterly, semiannually, annually, or at maturity. Chase CDs automatically renew, and after they mature, consumers get ten days to add money, modify the terms of the CD, or take money out without incurring fees. However, in line with customary industry standards, early withdrawal penalties—which can be as high as 365 days’ interest or as low as 90 days’ interest—apply if money is taken out before the CD matures. 

In September 2023, the Wall Street Journal stated that the bank is providing a 6% interest rate on certificates of deposit for new money entering the bank with a minimum of $5 million.

There are five CD terms available for the  Bank of America Corporation (NYSE:BAC) Featured Certificates of Deposit, ranging from seven months to 37 months. For some terms,  Bank of America Corporation (NYSE:BAC)’s Featured CDs have rates as low as 0.05% annual percentage yield (APY), with a $1,000 minimum starting deposit. However, some  Bank of America Corporation (NYSE:BAC) Featured CDs provide APYs as high as 4.80%, depending on the period you select.

Additionally,  Bank of America Corporation (NYSE:BAC) offers Fixed-term CDs, with terms ranging from one month to ten years. A $1,000 minimum deposit is required for the Bank of America Fixed Term Certificates of Deposit, which feature annual percentage rates (APYs) that vary based on the term and balance. A different choice is the Bank of America Flexible Certificate of Deposit, which has a $1,000 minimum deposit requirement and a 12-month term with an APY of 3.51%.

With that said, here are the 17 Countries with Highest CD Rates in 2024.

Methodology:

We used Trading Economics data to identify the 17 Countries with Highest CD Rates in 2024 and other data points mentioned in the list. Trading Economics collects data from each country’s government agencies and central banks. We included the top 17 names after sorting the list in ascending order. We picked this source since it gives us the most recent interest rates for every nation. CD rates are strongly correlated with interest rates. 

It should be emphasized that we were unable to maintain consistency because the latest recorded date for interest rates varies in each country. Hence, we have indicated the reported date in our list for clarification. According to the most recent published interest rate, the 17 Countries with Highest CD Rates in 2024 are listed in ascending order.

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17. Gambia

Latest Interest Rate (February 2024): 17%

Gambia’s interest rate stayed steady at 17% in February 2024, ranking it among the countries with the highest CD interest rates in 2024. Although Gambia has also been dealing with inflation, which amounted to 16.15% in January 2024, it is still less than the interest rate.  

16. Haiti 

Latest Interest Rate (January 2024): 17%

Haiti has a significant interest rate as of 17% in January 2024, placing it among the nations with high CD interest rates. Additionally, in December 2022, the deposit interest rate declined from 4.94% to 3.61%. 

Overall, interest rates and inflation are dynamically interacting in Haiti’s financial environment as of early 2024, underscoring the government’s efforts to manage economic difficulties while pursuing stability and expansion.

15. Angola

Latest Interest Rate (January 2024): 18%

Angola maintains a robust interest rate of 18% as of January 2024. The National Bank of Angola opted to maintain the current policy rate at its most recent meeting. Angola retains its excellent deposit returns, even with a minor dip in the Deposit Interest Rate from 7.1% to 6.85% in December 2023. Thus, Angola is included in the list of countries with the highest CD rates in 2024. However, the inflation rate has soared from 20.01% to 21.99% in 2024. 

14. Liberia

Latest Interest Rate (January 2024): 20%

At 20% in 2024, Liberia stands out as one of the nations with particularly high-interest rates. Investors may expect competitive returns with a 5.03% deposit interest rate. Even though the fact that, in 2024, the inflation rate spiked from 9.96% to 10.14%, posing a challenge to Liberia’s economic stability.       

13. Egypt

Latest Interest Rate (February 2024): 21.25%

Egypt is among the countries with the highest CD interest rates in February 2024, with a notable interest rate of 21.25%. In November 2023, the Deposit Interest Rate increased from 13.9% to 14.4% in an attempt to boost depositor returns. Positively, the rate of inflation has reduced, from 33.7% to 29.8% in January 2024, signaling efforts in managing price stability amid economic challenges.

12. Pakistan

Latest Interest Rate (February 2024): 22%

Pakistan is one of the countries with the highest interest rates as of January 2024, at 22%. As seen by its most recent meeting in January 2024, the Central Bank of Pakistan reaffirmed its intention to keep this rate steady for the fifth time in a row, demonstrating its commitment to stable monetary policy. Further encouraging news for depositors is that Pakistan’s Deposit Interest Rate increased from 5.97% in November 2021 to 7.25% in December 2023. Positively, inflation has somewhat decreased as of January 2024, from 29.66% to 28.34%, indicating the attempts to preserve financial stability. Still, the interest rate is lower than inflation. 

11. Sierra Leone

Latest Interest Rate (February 2024): 22.25%

Sierra Leone is one of the countries with the highest interest rates in 2024; as of February, it had a significant rate of 22.25%. This number is noteworthy even though it is much lower than the highest interest rate ever recorded, which was 27% in October 2000. Sierra Leone maintains a consistent deposit interest rate of 15.75% in 2024, providing stability to depositors. However, the high rate of 52.16% inflation in the nation is a serious challenge, underscoring the necessity of prudent economic management to allay worries about price stability. 

10. Nigeria

Latest Interest Rate (February 2024): 22.27%

Nigeria, with an interest rate of 22.75% as of January 2024, is one of the countries with the highest interest rates. The Central Bank of Nigeria raised its benchmark interest rate from 18.75% to 22.75%. In 2024, the interest rate on deposits remains constant at 15.75%. 

9. Iran

Latest Interest Rate (February 2024): 23%

Iran had a 23% interest rate in December 2023. From 1973 to 2023, Iran’s average interest rate was 17.19%, with a record-breaking high-interest rate of 23% in January 2023. Hence, Iran is one of the countries with the highest CD rates in 2024. Moreover, the deposit interest rate was 12.8% in 2016. Trading Economics estimates that the Deposit Interest Rate in Iran will typically range between 14.80% in 2024 and 12.80% in 2025. At 35.8% in 2024, the present inflation rate is still concerning though.

8. Congo

Latest Interest Rate (January 2024): 25%

Congo is one of the nations with the highest CD rates as of January 2024, with an impressive interest rate of 25%. Although the country’s average interest rate was 16.36% from 2008 to 2024, in January 2010, it reached an unparalleled peak of 70%. However, as of November 2023, the inflation rate had increased to 45.8%, signaling a pressing need for measures to address price stability and economic balance.                                                        

7. Malawi

Latest Interest Rate (February 2024): 26%

Malawi has a noteworthy interest rate of 26% as of February 2024, placing it among the countries with the highest CD rates in 2024. Before a recent hike to 26% in February 2024, the Central Bank of Malawi had been maintaining a stable interest rate of 24% since October 2023. Notwithstanding these efforts, this nation faces a significant obstacle in 2024 due to its elevated inflation rate of 35%, highlighting the necessity for efficacious approaches to achieve financial prosperity. 

6. Sudan

Latest Interest Rate (February 2023): 28.3%

With an amazing interest rate of 28.3% as of February 2023, Sudan is among the nations with the highest CD rates in 2024. The latter, which achieved an all-time high in February 2023, greatly surpasses Sudan’s average interest rate of 13.83% between 2003 and 2023. As of 2023, the country’s inflation rate dropped substantially from 83.6% to 63.3%, although it is still experiencing a severe economic crisis due to continuous high inflation. 

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Disclosure: None. 17 Countries with Highest CD Rates in 2024 is originally published on Insider Monkey.