Why Money Grows Faster in Some Countries — and Why That Doesn’t Always Help You
In some parts of the world — like Sri Lanka, India, Nigeria, or Southeast Asia — people can simply deposit money in a local bank, leave it there for 3 to 5 years, and end up with much more than they started with.
Meanwhile, if you do the same thing in Italy, France, or most of Europe, your money might barely grow at all — unless you actively invest in stocks, bonds, or other financial products.
Why does this happen?
Some Countries Pay More Just for Saving
Banks in countries with high inflation or weaker currencies often offer high interest rates just to attract deposits.
For example:
In these countries, your savings account might actually double in value over a few years, without any extra effort or risk.
Now You're Thinking:
“Why don’t I just send my money there?”
It’s a reasonable thought. But here’s why that idea rarely works out as expected.
The Currency Trap
Let’s say you convert €5,000 into Sri Lankan rupees and deposit them in a local bank offering 10% interest. After 5 years, you may have nearly double the amount in local currency.
But if the exchange rate changes significantly — for example, if the rupee loses 50% of its value against the euro — then when you convert the money back, you're left with the same value in euros or even less.
This means the return you earned in interest is canceled out by currency depreciation.
Real-world cases have shown that people can earn 80% interest over several years, but if the currency drops by 70%, the gain is essentially erased.
What If You Travel to That Country?
Another common idea is:
“What if I go on vacation or live there for a few months — can I open a local high-interest account and grow my savings?”
Here’s what usually happens:
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Banks often require local documentation such as a tax ID, residency permit, or proof of address.
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You may need to prove that your income is local.
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Even if you manage to open an account, your money is still exposed to the risk of currency devaluation.
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Some countries have restrictions or taxes on transferring money back out.
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Bank regulations and deposit protection are often weaker than in the EU.
So even if you spend 3 to 6 months in a country with high interest rates, it doesn’t guarantee access to those financial benefits — and getting your money back home can be more complicated than expected.
In Europe, It's a Different Game
If you live in a eurozone country, growing your money generally requires more active strategies, such as:
These options may involve more learning and some risk, but they are structured for long-term value and stability in strong currency environments.
The idea of sending your money abroad just to earn more interest may seem clever. But between exchange rate risk, banking restrictions, access limitations, and legal uncertainty, the reality is often more complex — and potentially dangerous.
Where you live changes how your money grows. But ultimately, what matters most is understanding the system you're working within and choosing the right tools for your environment.
