10%

[kayakebab]

Yes, it is 10% tax

[Scott and Lisa]

That's what I meant 10% tax on the interest, about 1% on the total investment. I thought it was usually 15% if its not in a bond?

[corbindallas]

With America continuing their quantive easing confirmed yesterday the Turkish economy will need to raise interest again to ensure the Lira does not weaken more so expect 10%+ to be a realistic interest rate on normal accounts in the not to distant future, already see some offering 9.5% and 9.75%, will not be surprised if we head back to 12% before the end of the year such is the situation of the Lira.

[wydad]

Actually with tapering of QE in US not taking place yet it means that there will be hot money flowing around for a while longer and the money that was being withdrawn from emerging markets anticipating tapering will now flow back in.
This means that in short term the Turkish Lira etc will strengthen and interest rates will not have to go up to encourage inflow of money

The recent weakening of the lira was a perfect storm of : fear of tapering, imminent Syrian intervention, Turkish current account deficit and political unrest in news.

The fear of QE reduction will occur again in advance of the next 3 month fed review. As Turkey and other emerging economies cannot make changes to their structural economic issues within 3 months we will likely see the same emerging market currencies weaken - maybe even more and by then interest rate hikes will be very likely.

Of course events can always interfere  

[corbindallas]

True but the Turkish Governement were criticised for not taking action sooner on raising cash capital income in the Turkish current account and the best way to do this is to raise interest sooner rather than later, agree it may not be by much and may not have the desired effects but because the US is continuing and not reporting again till December I would say it will be a interesting couple of months as obviously the elections were fought on economical stability and growth so I see what I have said being the outcome, of course we can never tell 100% and the US will probably continue their QE in Decembers report BUT?

[kayakebab]

The bond has now been delayed until 8th of October and will be 96 days instead of 106 so still time to apply.

[nichola]

I very recently took a belated look at the interest rates I was getting at the various banks that I have accounts with and the Finansbank has to be the worst. The cıft account was a pathetic 6.15%

One week ago they (Finansbank) were offering the following

32 day account 7.95%

46 day account 8.15%

61 day account 8.4%

92 day account 8.5%

Garanti 8.25% on a 32 day account

Şeker bank 9.5% for a 32 day account or 9.9% on a 62 day account.

ING is currently paying 8% on their Orange account.

[kayakebab]

From Monday 9,5 % in Finansbank, special kampanya, 53 days was told about it today.
You need to have the money in your double egg account or similar ready.
I would ring them first thing Monday morning Nichola.

[nichola]

Thanks Linda but I have already transferred a substantial sum of money from Finans to my new account with Şeker bank who also offer a far better rate of exchange when changing £'s to TL over the counter with or without an account in their branch.

I was mightily unimpressed with Finans when I went in a week ago as they didn't seem remotely concerned about keeping my business. I'm still keeping my Cıft account for easy access to ready money and I love their web site but they'll have to better than this if they want to lure me back.

[kayakebab]

I know how you feel Nichola. I've always been happy with them, but recently they don't reply to emails, have made lots of silly mistakes ( including paying someone else's electricity bill from our account and we have to wait for that person to come over and pay the money back to our account! That I goodness it was only 40 odd lira! ) and just don't seem as motivated any more.
Hoping it's just a blip.