Regular Savings Account

[Ian]

In 3 months time we will be in the position to save a regular £1000 per month. Is it possible to save that in our Turkish Savings Account - we have one with Finansbank - used a tax number etc - but have never used it.

We would like to transfer £5000 by swift every 5 months and get a decent rate (15/16%) of interest?
Is that the best way?

The reason I ask is that whenever I look at the rates on Turkish Bank websites it seems to be that the savings accounts are for fixed sums over a period of time - so does that mean each £5000 would be treated separately or does it just grow the capital amount at the beginning of each month with the interest calculated monthly?

Sorry if it sounds obvious - but not my strong point!  

[Fethiye]

Hi Ian,

The accounts would be separate, unless you wait and amalgamate them, and would have maturity dates based on the anniversary of the terms of the saving accounts - 1 month, 3 months 6 months etc.

SWIFTing is the best way unless you want to make a special trip every 5 months to Fethiye with cash (Less than £10,000) or take a visit to the ATM (using Nationwide Flex of course 0% commission) every day and draw out your daily allowance! The more you transfer each time the less the £20 - £ 30 fee bites.

Finally, with the YTL - £ rate at 2.31 today I would think twice before chasing the 14.02% net interest rate (16.5% less 15% tax at source) because your initial deposit could be severely dented. The YTL was at this level to the £ some 3 years ago and inflation has added around 30%+ to prices since then. The YTL is therefore, I think, overvalued in real terms and could drop like it did in 2006 when the rate hit around 3.19 YTL to the £.

Just some thoughts and not advice you understand, but hope it provides food for thought.

[Ian]

Iain - many thanks for your comprehensive reply.

I did think about the Nationwide option - but thought it would be too much hassle going in a regimented way to an ATM each day and then queuing at the counter at Finans.

After what you have said if it is possible I think I should put the first deposit in an 12 month deposit account then the next deposit in a 6 month account (6 months later) then at least I can bring the maturity dates together after 12 months.

Your views on the lira are what I have concluded after speaking with other residents when we were out over Christmas but it is good to have it confirmed again.

Thank again for your reply.