Long term USD deposits 13.4% p.a.

November 2009 - The International bank of Azerbaijan (IBA)Ganjlik 10-year deposit is 13.35% p.a. compounded for USD and 11.24% for EUR / GBP.

The average house price in the USA was US$8,500 in 1950. As an indication how high this deposit rate is, if house prices rose the same rate since 1950, the average house would cost US$15.7 million today.

If the DOW JONES index rose by that rate from today, it would surpass 800,000,000 in the year 2100. (no mathematical error there!)

Ford paid his assembly line workers US$5 a day in 1914. If wages increased at the same rate of the IBA deposit rate, those workers would be receiving wages of US$740,000 per day.

In May 1626, the Dutch bough New York from the Indians for goods worth 60 Guilders, generally converted to US$24. Had those dollars been invested at the IBA ganjlik deposit rate, it would mature today for 1.7 billion trillion. Consider the global GDP is less than $70 trillion.

Even recent examples reflect how high the IBA deposit rate is. In November 1972, the Dow Jones reached 1,000 for the first time. Had it increased by the same rate as the IBA deposit rates, today it would exceed 103,000.

A main advantage of this deposit compared to other fixed income investments such as bonds is there is zero volatility, an unheard of measurement in other fixed income investments. Also absolute returns are ensured whereas absolute return funds often produce negative periods. The returns on this deposit outperform the 5-year performance of any bond index, even high yield benchmarks.

It's unlikely that many investments will outperform the IBA long term deposits unless hyper-inflation returns in the next 10 years.