Calis Beach and Fethiye Turkey Discussion Forum
Information and Services in Turkey Section => Banks, Interest, Money Transfers, Insurance => Topic started by: Rimms on July 26, 2011, 21:44:33 PM
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Over the years I have seen various topics on here regarding bank interest but never took much notice. Obviously the rate has dropped quite dramatically over the recent years and so I have lost track on how thisngs work over there.
Several years ago I opened a Garanti Bank account (on the same day I recall as a certain Mr Campbell) I opened a TL & GBP account, I have not used these accounts recently because I noticed that rather than get some interest, I was regularly paying them bank charges. So what type of account do I need to open to receive some interest?
How often is the interest paid on money deposited?
Do you have to lock in your investment for a period of time or can you make withdrawls if required.
I hear about gross rates but what can you expect to get back on say a £100,000 deposit.
Thanks in advance all.
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9.75% at Finans on a 33 day account today.
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Tinkerman is this rate on a TL account?
I cannot see Turkish banks paying that rate on a sterling account. I would expect sterling rates in Turkey to mirror or be close to what rates UK banks pay.If they were paying 10% I and many others would be taking out by the suitcase.
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yes TL. account
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9.5% on ING's orange account, interest is paid daily, so you have access to funds anytime
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These days anyone opening an account for the first time would be well advised to open the Orange account at ING bank.
I am still a big fan of Finansbank (great English speaking staff, decent interest rates and their Xclusive credit card offers some good benefits) but the Orange account really gives it all.
No fees or charges, you benefit from a competitive interest rate of 10 - 9.5% (interest rate changes monthly), and you can deposit and withdraw money when ever you want without penalty.
It's basically a current account with time deposit account interest rates. No more counting the days until you can withdraw cash without a penalty. And for every day your money is in there it earns interest.
It's a deliberate attempt on their part to attract people who normally tie up their cash in time deposit accounts and I can't see why anyone wouldn't want to open an account with them.
I just hope they are safe when it all goes pear shaped in Europe!
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Thanks all, so the £100,000 investment could return something like £9,500 per year (depending on where you bank) and of course interest rates staying around the 9.5% level. What about tax on this interest ? how much and is it taken at source ?
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Tax is about 3% and deducted at source - I don't think the % has changed...
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I was told tax was 1.5%, can someone confirm this please. I had worked out my "income" would be 10% gross, 8.5% net on my investment. I don't need this much to live on (fortunately) but every little helps!
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Tax is currently 15% & is taken at source so 9.5% gross is 8.07% net
Also the max you can put into an Orange account is 98k tl
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Rimms, I would spread it around rather than one bank. If that bank was to go under you would at least have the comfort of the Turkish bank guarantee scheme. If you have sterling I would also take into account the exchange rate. If you converted today and the TL was to continue to rise against sterling you could have a capital loss.You could gain on the swings and lose on the roundabout.
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Rimms,as mentioned tax is deducted at 15% On 100k (Turkish Lira) you would (at a static 9.5%) get 792TL gross approx.per month and after tax..673TL per month. Based on a 30 day OH account or Ing Bank(no tie up number of days).
Don't forget guarantees are only 50K Turkish Lira for each person,so you would need a joint account(2-persons)to guarantee safety on 100k TL,or once again spread to more than one bank, the choice is yours.
As you mention 100K Sterling to invest you will have to spread that amount wisely in more than one bank. At todays rate of 2.81TL to the pound, you are looking at 280,521TL, nice one.
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Thanks all for the really interesting replies. I used the £100k example as I thought it was the sort of money people could raise by selling up in the UK. Unfortunately we don't have £100k sitting in the bank and have decided that we would want to keep our place in the UK as well as the house in Calis. However, I thought the example was interesting after reading how difficult it had become for those living in Turkey and depending on bank interest as an important factor, or even the only factor towards monthly income. At today's rate the above investment would bring you around TL 1,900 per month. I must admit that we spend more than that when there on holiday, but if living there, I bet you could have a fairly comfortable lifestyle on that sort of amount? I must admit, it's got me thinking, especially on a day like today where it's cold, grey and miserable outside when this is supposed to be the height of summer !