Monday, May 28, 2007
Inflation, Tax and Savings Rate
With a 5+% Inflation Rate and a Tax Rate of 30%, a Savings account earning 5% is really earning you a negative interest rate. One very good reason to keep my USD in the US besides of course the high value of the Rupee, where atleast the Returns will not be taxed while I am not in the US earning any money. The big question though is if the money is safe there!!!