Author Topic: 32 day interest on TL account  (Read 3340 times)

0 Members and 1 Guest are viewing this topic.

Offline rhodie

  • Newbie
  • *
  • Posts: 17
  • Location: United Kingdom
32 day interest on TL account
« on: March 13, 2015, 15:01:11 PM »
Hi all. And warm greetings. My wife and I own a property in Fethiye where we enjoy 2 holidays there every year, we are now going to stay there +- 6 months each year as we will be retiring this year.
We will be transferring money to Turkey at the end of April and coming out to Fethiye in May. The Fethiye bank has stated that they would give 8.75% interest on a 32 day calculated each day. Does that sound right my question is? is the 8.75% a annual interest or 8.75% every 32 days. Now being realy cheaky what % wise do you pay from your interest like bank charges, tax ETC : :) any advice would be much appreciated
Rhodie



Offline JohnF

  • Administrator
  • Prolific Member
  • *****
  • Posts: 4322
Re: 32 day interest on TL account
« Reply #1 on: March 13, 2015, 15:25:04 PM »
Best advice currently...  keep it in sterling.

JF

Offline rhodie

  • Newbie
  • *
  • Posts: 17
  • Location: United Kingdom
Re: 32 day interest on TL account
« Reply #2 on: March 13, 2015, 15:36:24 PM »
Hi John is there any specific reason for that-keep in sterling the sterling??

Offline Colwyn

  • Prolific Member
  • *****
  • Posts: 6412
  • Location: Bristol
Re: 32 day interest on TL account
« Reply #3 on: March 13, 2015, 15:54:27 PM »
Rhodie
I have a flood of cliches coming on - you have inadvertently opened a can of worms, walked into a minefield, put the cat among the pigeons, and so on. Since the crisis of the lira in December 2014 - well perhaps as long ago as the previous crisis in January 2014, there have been lively discussions on here about whether it makes sense to put sterling into lira accounts. Some think it perfectly sound and, indeed, sensible; others, like JohnF and me, wouldn't go near the lira with a bargepole (and claim Turkish people don't either when they have a choice); and I suspect a lot of members are thoroughly confused about it and don't post. You have time before your move to read up a little on it and I would suggest you don't make any big decisions until you have some understanding of what is a stake. I might find time later on to do a demonstration sum to highlight the issue but I think you could start with a couple of threads in this Banking section - the one below this confusingly named Why is the Lira Getting Stronger?, and one a little further down about the Trauma of Changing Lira Back into Sterling.

The best of luck with it.

Offline Colwyn

  • Prolific Member
  • *****
  • Posts: 6412
  • Location: Bristol
Re: 32 day interest on TL account
« Reply #4 on: March 13, 2015, 16:27:13 PM »
OK, I've done my little sum to suit your circumstances. Let's suppose you moved 6 months on Sept 13th 2014. You had £1000 in your wallet. What to do? Put it into a lira account; or put it into a sterling account? Supposing you ent for the lira account. Your £1000 would have bought 3,500TL. Let's suppose a 9% interest rate. After 6 months you would have earned approx 157TL interest. Once you had paid tax you would have approx 133 profit. So your total is today 3633TL. Which, at today's prices, is worth £935. If you had left your £1000 in a sterling account you would £1000 plus a few quid interest say £1010) - today worth 3,920TL.

That's just what would have happened in the last six months. Nobody knows what will happen in the next 6 months.

Offline rhodie

  • Newbie
  • *
  • Posts: 17
  • Location: United Kingdom
Re: 32 day interest on TL account
« Reply #5 on: March 13, 2015, 17:32:44 PM »
Wow Colwyn i see what you mean. So basically you dont get 8.75% every 32 days in fact you get just below 1/12 being roughly 0.75% compounded daily and paid to you less tax aprox 15% me thinks so would have to invest a large some of stirling into lira to get a decent sum to boost your pension. the the issue is if you want to exchange back to sterling its a possible loss. My wife and i would like to spend about 6 months a year in Fethiye it still seems a good idea or reasonable idea to do this rather than leave it in stirling in the UK earning monkey nuts  :-\ :-\ :-\ :-\Man when we bought in fethiye 8 years ago we had friends there then earning 20% interest---- times are changing :P
Colwyn you have been very helpful thank you  :)

Offline Scott and Lisa

  • Full Member
  • ***
  • Posts: 469
  • Age: 50
  • Location: FOLKESTONE
  • Newly Registered
Re: 32 day interest on TL account
« Reply #6 on: March 13, 2015, 23:58:18 PM »
It's also s different prospect if it's an amount of money that you will definatly spend in Turkey. Nowhere near as risky

Offline c1

  • Northampton, UK
  • Sr. Member
  • ****
  • Posts: 1892
  • Location: United Kingdom
Re: 32 day interest on TL account
« Reply #7 on: June 02, 2015, 17:08:21 PM »
You could open a sterling acc at most banks, with a smallish current acc in lira which would enable the direct payments of elec,rates etc. transferring as and when needed from one to the other.we had at one time four or five accounts with two separate banks and reduced this down to one bank and two accounts. Best of luck with what ever you decide its your money and your retirement enjoy them both




Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf