Calis Beach and Fethiye Turkey Discussion Forum
Information and Services in Turkey Section => Banks, Interest, Money Transfers, Insurance => Topic started by: Steve May on September 04, 2011, 21:51:30 PM
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Hi, all I am new to this forum and wanted some info on the Turkish HSBC banking system, am I right in saying that anyone can open one of these monthly accounts, get interest made from that month, then re invest capital for another 30 days and just keep going like this every month, surley their must be some kind of catch here.
Looking forward to an answewer from any x pats who currantly lives there.
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Well it's true Steve, you can make in the region of 7-9% - the "catch" if there is one is that these are Lira accounts, not sterling/euro/dollar accounts so you run the risk of wiping out your interest gain with exchange rate changes. This was most notable in recent months where the TL/£ rate went from something around 2.35/£ to 2.95/£. In other words, putting aside your 9% interest, with that exchange rate movement 100,000 Lira converted back to £42,500 earlier this year - today the same 100,000 TL would exchange back to £35,200.
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I guess other "catches" would be that you need a Turkish tax number & need to set up the accounts in person rather than investing over the internet from the UK, other than that I can't seem to find a fault with getting in excess of 8% interest (gross)on my hard earned dosh!
Oh yes, you will pay 1.5% tax on your reward too, still a better net return than the measly 3% from Santander!
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Surely that should be 15% :)
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Yes, but dont call him Shirley :)
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Sorry you are correct Brian, you pay 15% of the interest in tax.
Love,
Shirley!
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Careful....you know how people talk 8):D
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Its ok Brian, you,re too far away now for speed dating. :)
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Thanks Guys but this is still buggin me
hsbc bank
22-31 day account 8.00% TRY or 1.75% Pound sterling. so if I have a Sterling account and get 1.75% interest on 31 day account that would mean in total a years interest in pound sterling account would be 12 x 1.7% = 21% is that right or am I missing something here.
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1.75% per annum surely, not per 31 days
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Agreed Scunner. Also to get a tax no, you would need a Turkish address
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I didn't need a Turkish address to get my tax number & that was only a few months ago, all I showed was my passport.
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I set up a HSBC account in turkey last month.
In fact I set up two, one in sterling and one in Lira.
they didnt seem to know what charges if any there would be for transferring from english account to turkish so once my card arrives I shall be asking over here in the UK.
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Keng38 we pay £17 fixed fee for transfer from uk to turkey you can do it online just remember to tick the box that says sender to pay all fees
You need to get the right no for your bank in turkey we have to use the iban no the head office in Istanbul if you need any info I can email you a hsbc templet that has all the right nos on it
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I was thinking to set up a 2nd paypal account with a turkish hotmail account and link it to my turkish bank account.
You can send money for free to paypal accounts then just withdraw into your bank (again for free)