Author Topic: Interest rates  (Read 924 times)

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Offline MarKar

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Interest rates
« on: May 05, 2023, 14:12:52 PM »
I have recently updated my Yapi Kredi account after a few years none use, I also now have the banking app and very useful too!
I have noticed that the interest rate has dropped considerably since February from around 23/25% to now around 13/14% on time  deposit accounts. My question is have the rates dropped due to the upcoming elections, inflation, currency exchange fluctuating or even could I get higher rates elsewhere or is it just how it goes?.
I understand the risks that can come with investment and if you need to convert lira back to sterling.
Tia
Karen



Offline DavidNicholson

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Re: Interest rates
« Reply #1 on: May 09, 2023, 10:00:22 AM »
I think that is just how it is. 
As we know, Turkey has an incredibly high inflation rate and whereas most governments, and economists, seem to think that the way to cure inflation is to increase interest rates, I have read that Erdogen believes the opposite.  He thinks that if inflation is high then reducing interest rates will help.
There is an argument for that, but it is not one shared by the majority of economists.
He reduced rates when the Turkish inflation rate really started to take off, and certainly it has not improved.  So, the rates you quoted for time deposits are, in my opinion, just how it is at the moment.

Offline trainer

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Re: Interest rates
« Reply #2 on: May 09, 2023, 19:59:17 PM »
I have a Garanti monthly savings account and I got 27.90% on Monday the reason it can fluctuate is for a few reasons
How much money is in the account
The type of account
The bank
And the central bank rate
I txt my account manager or go in to my branch and ask for the highest rate available for me if you leave it to the bank it will automatically give you the lowest rate
If it’s in TL you get a larger % than in pounds or euros

Offline MarKar

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Re: Interest rates
« Reply #3 on: May 13, 2023, 01:27:03 AM »
The amount invested hasn't changed, I started off with the  higher rate on a 30 day TL time deposit but cant get anywhere near that rate now. On the app it gives you comparison if you invest more but cant get anywhere nesr the 23% I got a couple of months back.. I'm wandering now if it was an introductory offer as a new app user and updating my account?
I will just keep a close eye on it, finding it quite interesting how much fluctuations there.

Offline trainer

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Re: Interest rates
« Reply #4 on: May 13, 2023, 11:05:00 AM »
If possible I would go in and ask the question and go to a few banks and ask them the rates and any introductory offers, we have the Garanti app but just to monitor our outgoings.
Turkish banks  have had a hard few years because of the central bank’s interest rate policy a lot of Turks have withdrawn their funds and bought gold as they see it as a better investment so the banks are trying to keep cash money in the vaults so are using higher interest rates as an incentive




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