And the inflation rate in India is 8.9%.[1] so 7% interest is terrible. Doesn't beat inflation. Your money still loses value over time.

The US has had very low inflation in the last decade or so with very small deflation in 2009.[2] but interest isn't beating inflation here either though.

[1]http://en.wikipedia.org/wiki/Inflation_in_India

[2]http://www.usinflationcalculator.com/inflation/historical-in...

As far as "high yield" savings goes, for a normal savings account or money market account you'll be looking at 1% being the max rate right now, if you can find it. Last I took a glance I saw .95% being the highest. Those are for online banks. I get .85% with Discover Bank (online savings account). I also have a 17 month CD that earn me a whopping 2%. That was a one time special my [brick and mortar] credit union was offering. Those accounts are FDIC (or NCUA) insured.