Interest rate

[Leo]

Hi folks, looking for some guidance. Preparing for our move to Turkey and looking for best interest rate for our money in Turkey.

Happy to keep this in pounds, euros or TL.

Not interested in exchange rates etc, as this is a permanent move.

Thanks

 

[juco]

I think TL will give the best interest rates something like a 30 day account.
However if it were me I would also keep a stash in the UK as the TL can be volatile.

 

[IbrahimAbi]

I would keep the majority of it in sterling and in the UK if I were you. Bring it out as and when you need it. All of us thought we were moving here permanently but many have had to go back for one reason or another. The interest rates fluctuate from month to month but best to consider around 10% but the interest accrued is subject to about 15% tax and taken at source.

 

[flensdorf]

@ leo
Weise words from Ibrahim! ! ! !
6 years ago i also thought the move to TR was the last station ever.....
To move back to europe 2015 was costly - exchanging TL back to €.

 

[A89]

I was given 12% today on TL account. My bank advises me that the best rates just now are on accounts of around 40 days. Interest rates are controlled by Central Bank so should be about the same at all banks.



Alison

 

[ted j]

We have been getting 12% + on 34 day accounts for 9 months now
The guy who set our accounts up said I can do the monthly e deposit transaction myself but I let him do it for us, as he tends to get a few more % points than is available on the bank's internet site

 

[A89]

Up to around 3 months ago I was getting almost 14% buts its been falling slowly since then.




Alison

 

[immac]

Remember that you pay tax on the interest. The TL is still a risky currency and is liable to drop if, for example, the USD increases their interest rates. The high rates of interest look attractive, but compare the fall in the TL value over the last few years with those rates and you are making a loss (and paying tax on that loss).

There is a lot on this site about TL rates. The Central Bank is highly political and does the bidding of the President. That can add to volatility.

Ian

 

[Leo]

Remember that you pay tax on the interest. The TL is still a risky currency and is liable to drop if, for example, the USD increases their interest rates. The high rates of interest look attractive, but compare the fall in the TL value over the last few years with those rates and you are making a loss (and paying tax on that loss).

There is a lot on this site about TL rates. The Central Bank is highly political and does the bidding of the President. That can add to volatility.

Ian

Thanks Ian, problem is that in the UK the interest rates are lower than the cost of living rises. Even the ISSA is garbage - so I am loosing value just keeping my little bit of dosh in the bank.

Yes, there are investments advertised that suggest 5% and some even higher, but the risks seem very high and then I have to pay both tax and the investment managers for their expertise. Every projection I have had done shows me making a loss, at least in the next 2 years - and the losses experienced by nearly all investment portfolios in 2015 were phenomenal.

Thus me looking for guidance from others who have made to move.

Thanks to all folks

Leo.

 

[WIDDRINGTON]

Up to around 3 months ago I was getting almost 14% buts its been falling slowly since then.

_Alison

who is that with?

 

[altinkum kev]

Up to around 3 months ago I was getting almost 14% buts its been falling slowly since then.




Alison

Same for me with Finansbank.

 

[immac]

From Hurriyet:
Extract: "Turkey is likely to cut interest rates again this month, a top adviser to President Recep Tayyip Erdoğan said on June 14, heaping more pressure on the Central Bank and shrugging off concerns about inflation and investor flight."

Full: Top Erdo?an adviser sees more rate cuts, shrugs off inflation worries - ECONOMICS

Ian

 

[Jane68]

Interest Rates?

Does anybody know what interest rates the banks were offering today?

 

[juco]

Garanti:

 

[TNT123]

Turkish central bank kept its benchmark one-week repo rate on hold at 7.5 percent on July 19th, as widely expected. Policymakers said the current monetary policy stance, the cautious macroprudential policies and the effective use of the policy instruments increased the resilience of the economy against shocks, after a failed attempt at a military coup in the country led to sharp fluctuations in financial markets. Meanwhile, the bank lowered its overnight lending rate for a fifth time in a row to 8.75 percent, signaling further willingness to ease policy, and kept the overnight borrowing rate at 7.25 percent. Inflation went up in June and remains above the central bank's 5 percent target. Interest Rate in Turkey averaged 59.65 percent from 1990 until 2016, reaching an all time high of 500 percent in March of 1994 and a record low of 4.50 percent in May of 2013. Interest Rate in Turkey is reported by the Central Bank of the Republic of Turkey.

Turkey Interest Rate | 1990-2016 | Data | Chart | Calendar | Forecast

 

[Shen60]

Hello everyone, and apologises in advance if this subject has been discussed before as I could not find the thread.

What is the general view of saving personal monies in Turkey at the present time. I have about £20,000 and very tempted to put it into an account in TU, and the interest rate on a 30 day tl account is certainly very attractive, given the poor rates in the UK. I have looked at the pitfalls of this if needing to convert back into Gbp, and security of the funds in a TU bank. Im aware not to put all eggs in one basket and not to exceed the 100,000 tl which is what is guaranteed if bank gets into trouble. Still cannot make my mind up if a good idea. I have a house in TU and intend spending more time out there when I retire in the next year, and there is always bills to pay, community charge , repairs, needing spending money etc...

I have a HSBC account and they have suggested a Premier acct for higher interest rates. Has anyone got experience with this bank, is it really as good as it sounds?

Would be grateful for some general views on this subject, and whether I have really considered all of the disadvantages of savings in TU.

Thanks in advance.

 

[angelaturkey]

When I first came to Side, Turkey I was advised to open a bank account with HSBC but they were really awful ... always at least a one hour wait to be served... and they are not affiliated to HSBC in the UK in any way shape or form, which of course is not what I had expected. After much research, I opened an account with Yapi Kredi who have been fantastic. I never have to wait there. They all speak English and when I had been with them for 10 years I had a courier delivery to my door from them of 6 big tins of coffee and hot chocolate to thank me for my business! I have been with NatWest bank in England for over 30 years and have never received anything at all from them. Also Yapi Kredi is the only Turkish bank that will not go down even if the Government does. I am now getting 13% interest on my monthly deposit account with them in TL. When I came here 12 years ago I was getting 29% interest!!! In all the time I have been in Turkey I have easily managed to live off my interest alone and never delve into my capital. Don't you just love Turkey? x Angela x

 

[Saoirse]

In Espana the savings rate is 0.7% and that's before tax

 

[BEZ]

Been getting around 10.5% & 11% for over a year with Garanti

 

[butt007]

HSBC Premier account. With the high interest account of 100,000 lira minimum invested. The rate is 10.25% per month at the moment. Tax charged on it which the bank takes is 15%.
So 20,000 pounds at shall we say 4.55tl to the pound will give you 91,000liras, not quite enough.......you would need another 9,000lira.
Warren