My savings account in the U.S. says that it gives me an interest rate of 0.01% and it comes with a lot of restrictions (like limiting the number of transactions per month etc.), and checking account has no interest.
The bank account I have in India gives me an interest rate of 3%+ with no restriction on transactions. Also, I have the option of moving surplus funds to a fixed deposit which would get broken when funds in my primary account are low, but would give me an interest of almost 7.5% (calculated daily).
My questions are:
- Is there really a difference in the interest rates for accounts in India vs. the U.S.? Why?
- Would it be better for me to transfer any surplus funds I have to my account in India – while setting aside an emergency fund here in the U.S. and also keeping in mind that I will be moving back after a couple of years?