Downsides of saving accounts in drams? and correct me if I’m wrong
Let’s say an elderly couple have $100k and want to move to Armenia.
I suggested to convert that money in AMD and put it in a bank with monthly cash out. Evocabank gives 10% which is 10k per year or $833 per month.
I read there is capital tax of 10% on the interest which makes the monthly net interest 833-83 =$750
- Is $1000-1250 enough for 2 elderly to live (their son is willing to chip in up to $500 a month)? rent also need to be paid with that (not in the center, it can also be outside Yerevan).
The couple is saying that it’s better to buy a small apartment with that money, instead of relying on the interest from the bank, I argued that if they do this, they won’t have any liquidity or cash flow every month.
- There are not convinced about the interest payment and all, but is there something wrong about my idea? other than the drop of the AMD against USD?