Calis Beach and Fethiye Turkey Discussion Forum
Turkey Related Subjects => Cost of Living in Turkey => Topic started by: glennat on June 25, 2004, 09:23:11 AM
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Hi,
Like many people new to Turkey (I'm so new, I'm not actually there yet!) I'm amazed to hear about the incredible interest rates. In my experience, high interest rates usually indicate high inflation and therefore the monies earned through interest payments are required in order to keep the relative value of your savings the same.....I must start drinking decaf :)
Does anyone have any experience of this?
I'm off to get a coffee.
Glen.
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Hi Glen
Use the search facility (top of page)for lots of info on current interest/inflation rates in Turkey.
Makes for interesting reading.
Anne
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Hi Anne,
Thanks for quick reply and good suggestion. Your reply was so quick that I am still without a coffee (perhaps a good thing :)).
I ran the search as you suggested but seemed to find more questions then answers. Certainly there seem to be a lot of 'bargains' to be had in the banking sector but inflation in Turkey has been running between 25% - 70% (from what I have read), which leads me to wonder if I have misunderstood something....it wouldn't be the first time.
I'll keep watching this space.
Glen
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Hi Glen
Have you sobered up yet
You are of course correct that interest rates and inflation follow each other - but if you are not living here you gain one without losing on the other. I am unsure about the true inflation rate, things certainly don't seem to have gone up 20%+ across the board over the last year (apart from houses of course).
Banks offering 60-70% interest on savings do exist, but they are very risky. The idea of a UK bank going bust seems incredibly unlikely, but in Turkey it is not uncommon. The main banks here may offer lower rates, but they are underwritten and an altogether better idea.
Scunner
Financial Advisor to Nick Leeson
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Hi Scunner,
Have I sobered up yet....well.....just.
BTW, thanks for the good advice re: banking in one place whilst living in another. I never thought of it like that - D'oh.
All I need now is some money.
Glen.
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Hi Glennat
If you want to have detailed information about inflation in Turkey try the link below.
It is the link State Statistics Office's website in English
http://www.die.gov.tr/ENGLISH/index.html
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Thanks Cenk,
The info on that sight (once I stopped trying to read it in Turkish after realising there was an 'English' button) was good and showed inflation currently stands at single figures (between 8.9 and 11%).
This means that interest on savings of 21% will produce an income of about 10%/year.
So, depositing £50,000 will produce interest of £10,500/year. Leave £5000 in the account to cover inflation and draw the remaining £5500 out.
Good eh.
Glen.
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God I hate you maths graduates
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I don't even pretend to understand it Gordon lol
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Let me help you both on the tricky subject of the Turkish economy.
Beer £1 a pint
Fags £1 per packet
Thank you,
Scunner
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Hi Scunner, That's my idea of inflation, but as I don't smoke (apart from hubble-bubble!), I can have two pints instead :D
Pete [|)]
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...and I'll have a glass of that funny smelling red stuff. No idea what it was called but it did the trick !
Glen
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Woodstain?
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Glen, You're not a vampire; are you [?]
Pete ;)
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It may have been red-diesel, it had a similar consistancy.....but I'm sure there was Vodka in it.
So, I guess I'll have a glass of Vodka and red-diesel.