Free Banking?

[5neeky]

Thanks for the info everyone

[BabaYard]

Hi all,

Also recently bought property. Is it true that if you use a Lira savings account you can live off the >20% interest?? Is this realistic? Can you deposit around 30K and lie back in the sun? I'd aprreciate some advice from ex pats already in the know [?]

[AnneandTerry]

Our Garanti deposit account is currently paying 21% p.a. tax paid.   We chose a monthly account, which means the interest is added at the end of each month and is therefore compounded.

You have to have a Turkish tax number to open the account.  Due to the national love of paperwork, the procedure to do this is quite complicated and very time-consuming, but worth it in the end.

Anne and Terry

[Anne]

Anne/Terry
Does this mean you pay tax on your savings? and/or for any earnings from your property?
Anne

[teresa321]

I used Finan Bank because they didn't need the tax number, I don't know why they differ in this?
We just walked in with our passports and opened the account. We put ours in a daily interest account. I don't know much about finance but I don't think putting your 30K into Turkish Lira and sitting back is very wise, it is not as simple as it sounds and you could find yourself poorer. You need to watch the market because of the currency fluctuations.

Teresa

[Harley]

Whilst we were over there we a couple who had moved to Calis to retire...  According to them they banked £40.000 in a Lira account and get £100 per week interest... In theory it should be enough to live on without using your saving...
 
Like Teresa said... If you were to do this it pays to keep a watchful eye on the market because you could end up loosing a lot of money...
However if you're not working you could make this your hobby...

I reccommend the Finansbank...  There is an English speaking girl in there who is just brilliant...

Harley

harley

[canalman]

Hi All, When we come back in July we will probably want to open a bank account in Turkey and all that has been said in this thread has been really useful. Could anyone tell me if Garanti and Finans are both state owne or private. If this has already been stated on the forum, sorry for not paying attention! Pete  and Sue

[AnneandTerry]

Tax is paid at source, so the interest you get is tax paid.   I know what you mean about currency fluctuations, but we don't intend to change the money back into sterling, just to spend it in Turkey.

Anne and Terry

[flowerpotman]

Hi all just got back from ovacik and while we were out there paid deposit on a lovely piece of land at Toparla near Koycegiz lake ( views to die for lake in front and mountains behind ).I agree with Anne that you cannot open accounts with view to changing back to sterling when you live out there, the fluctuations in the exchange rate do mean you can lose as well as win but inflation does not go up and down when buying in the shops.People I have talked to seem to either have about 3 or 4 accounts. 1 for daily living 1 for tl deposit for interest to be paid to daily living account ( weekly ,monthly whatever)1 sterling account ( to play exchange rate game) and 1 in goverment bonds for longer term security.When we go back in sept I will open sterling account ( already have tl deposit account).I am using Yapi Kredi but any of the big banks will guarantee your money up to £10,000 ( goverment compensation).Now we just have the sweating to go through as we will start land registry transfer when we go back ( does anyone know if we have to pay a percentage of purchase price like you do when you buy a house?).Then the first phase build can commence ( going to be a nervous wreck for the next few years lol) Phil and Sharon

[BabaYard]

Thanks for the advice all. We too would only be looking to benifit from the TL monthly interest to top up any wage earnings. Not to transfer back to Sterling. For those of you who have started doing this, please keep us updated as it will be interesting to understand the reality [)]