Calis Beach and Fethiye Turkey Discussion Forum
Information and Services in Turkey Section => Banks, Interest, Money Transfers, Insurance => Topic started by: SteveJ on May 09, 2013, 18:28:29 PM
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for arguments sake that I had an empty (no debt) credit card that has a credit limit of £13,000 and that the bank have offered me a 0% loan for 12 months. In theory I could borrow £10,000 of the banks money (it would cost me a £300 admin fee), transfer that across to my savings account in Turkey at 8% and then just before the 12 month 0% offer expires transfer the £10k back to the bank, pay off the loan and pocket (less admin fee and tranfer fees and possibly some tax) the £800 I'd earned in interest, around £400 for doing diddly by my simple calculation
OK you CBF Bankers - where's the obvious hole that I've missed? :o
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The exchange rate kicking you in the nuts :)
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Party Pooper :-[
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Interest rate in Turkey is currently 6.5% & falling!
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another one!
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SteveJ - yes it will work - but you will only be able to bank it for 11 month to ensure the debt is cleared within the year, so the £300 admin charge and the tax being taken off at source will near wipe out your interest, but think positive - you will manage to buy a couple of beers with the profit (as long as the interest rate and the price of beer do not change drastically)
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Thanks Jim - that's more like it. £10k invested and two free beers after a year. What's not to like about that deal? ;D
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You shouldn't be to happy with a 2 beer profit Steve. 2 beers = 12 tl
This means you have a nett total sterling value of £10,004.33 using Jim's 2 beer profit.
But an increase in exchange rate of +0.01/£ - say from 2.76 to 2.77 over the entire year - takes your £10,000 investment 12 months ago from 27,600 TL back then, to a value of £ 9968.23 (27,612 TL/2.77) on re-exchange to sterling. So, for every 1 kurus increase in TL/£ exchange rate, you lose far more than the two beers you gained :D
Disclaimer: Exchange rates go up when you are going on holiday and down when you need pounds.
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You obviously have too much time on your hands, Scunner! ;)
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Mind you, it may go the other way and he makes a couple of grand. ( My glass is half full by the way )
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I was just going to say the same thing Keith ,you took the words from my mouth . :-[
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He who dares Rodders, He who dares.....
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Be a bit careful to read the small print on those balance transfer offers. You're OK if you never use the credit card but as soon as you start using it a lot of them start charging you interest whether you pay off what you've spent or not. Either read the small print carefully or never use the card.
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Stuff investing, just enjoy spending it 8)
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You shouldn't be to happy with a 2 beer profit Steve. 2 beers = 12 tl
This means you have a nett total sterling value of £10,004.33 using Jim's 2 beer profit.
But an increase in exchange rate of +0.01/£ - say from 2.76 to 2.77 over the entire year - takes your £10,000 investment 12 months ago from 27,600 TL back then, to a value of £ 9968.23 (27,612 TL/2.77) on re-exchange to sterling. So, for every 1 kurus increase in TL/£ exchange rate, you lose far more than the two beers you gained :D
Disclaimer: Exchange rates go up when you are going on holiday and down when you need pounds.
Keith, you forgot that when buying back a currency the rate is higher normally by 4 or 5 points.
Presently The Doviz rate is £1 = 2.755 Lira but you have to give 2.80 lira to buy a pound, therefore 27,612 / 2.80 = an even bigger loss :(
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Sod it - I'll buy my own beers ;D