A post from Shirley M. Mueller.
Dr. Shirley Mueller is a physician turned financial consultant and investment educator. Her fee is hourly, not a percentage of assets. She welcomes comments at ShirleyMMueller@MyMoneyMD.com. For more information, visit her website at MyMoneyMD.com.
Save your money and get interest rates at 9%? You can, at least in India.
While there recently, I saw a minimum of nine large billboards that made this promise. They couldn’t be missed. The posters were monumental and on every major highway in and around Mumbai, plus elsewhere. They were appealing and convincing, showing happy participants. In fact, I wanted to be one of them. If I lived in India I could.
For Americans though, the advertisement is too good to be true. We are struggling to achieve just 0.5% on short-term savings, one-eighteenth what we could glean in India. This savings account rate isn’t the only reason that India looks good.
India is developing rapidly. Its gross domestic product (GDP) growth rate in the past few years has been enormous, though it is slowing. Nevertheless, compared to the U.S, the increase in growth rate is remarkably rich. The charts below tell the story. India’s percent change in GDP is above and the U.S. is below.