Current Bank Interest Rates

[corbindallas]

I know this is posted regularly, but with the current newer financial climate meltdown around, how safe is your bank in Turkey? I am looking at what is on offer at the various banks in Turkey by interest given and possibly not keeping all eggs in one basket! Interesting to see ING is the biggest Bank in the world by revenue and 7th largest bank in Turkey up from 8th last year, their CEO Mr Nagel plans to move it into the top 5 thus the Orange account incentive. AKBANK was voted the best bank in Turkey for stability, something it has won the past 3 years in a row by Euromoney a leading worldwide finance magazine.

Currently:
ING Orange account are offering 9% or 11% on new accounts.
AKBANK are offering 9.5% up to 10.75%
Can you tell us what your bank is offering for comparison and views

[Lorraine]

HSBC, 9.5% 32day account, 10.25% 92 day account and 10.5% 6 month account.

Also additional information re the ING Orange account, 11% for the first 30 days after opening 9% following this, and if the amounbt in the account is above 100,000 Lira then the interest decreases to 7%, individual account only and only available to withdraw cash at the branch - no ATM card is given.

[Ovacikpeedoff]

Today, the Turkish central bank has cut the base rate by 0.5%. Interest rates are now at the lowest level they have ever been.

This cut was totally against market expectation and the TL has fallen against all currencies. The market is baffled that the Turkish economy isoverheating yet by cutting interest rates the Turkish government is going to try and achieve higher growth that is almost certainly going to be linked to higher inflation. So anyone living in Turkey is likely to receive lower income attached to higher prices. Those with pensions or income from theUk will gain with the better exchange rate.

[corbindallas]

Strange move as usual always expect the unexpected,great for exchange rate £ to TL, crap for bank interest rate. Awful if selling up and moving back to UK having to change TL to £.

3.50TL to the pound here we come!

[Eric]

Quote; "Those with pensions or income from theUk will gain with the better exchange rate."

Bring it on:D:D:D:D:D:D:D:D:D:D

[Ovacikpeedoff]

Eric, dont go on a big spend yet. Anything could happen. Today has been one of the worst days for the stock markets. Half the Eurozone is heading to default and that could throw the currency markets into total turmoil. The big problem for the UK is how much our banks are exposed to these markets. The UK will not be cushioned from a collapse of the Euro. As it stands it is probably in the best interests of the UK that the Euro survives.

[corbindallas]

Turkey has it's own problem linked with Europe with 50% of all exports from Turkey are to Euro Countries, see this link http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2011/08/04/feature-02 . Add to that it's current banking current account deficit, if the Euro does go belly up equals no high exports and no high incomes means some banks may collapse in Turkey due to their dangerous levels of under funding reserves. Also note that their is no opposition to what ever finance policy is made in Turkey!Current Turkish government advice' don't spend to much' current UK government advice 'spend to get the economy back on track' who's right and who's wrong!? Also as a side issue but as Turkey is not a full EU member how do they manage to export 50% of their stock to Euro Countries, I thought the Euro Zone was supposed to be a member country protected trading zone[?]

[Eric]

No problem with going on a spending spree Gerry (but don't tell Fi), as my pension is paid monthly into a UK bank and we pull it out here via the 'hole in the wall'.  Enjoying the upturn in the market as it compensates for when the exchange rate was 2.11.  When you have a pension paid in the UK you have to watch when you draw it out at this end!