Overseas Savings Accounts

CARAVANMAN

Savings accounts in Turkey return interest at over 16%.
What prevents us from investing in foreign countries?
If you have any experience, good or bad, I would be interested to hear from you

moneymass

16% yes, more like 13% after tax and whatever.

Experience has been good, can access online.

Saving in a foreign currency puts you at risk from strength of currency i.e. exchange rates etc

You need to have a turkish tax code also I believe, may be different with different banks.

Jonbvn

16% interest on a currency that may drop against "hard" currencies by more than 30% per year!

I hear that the Bank of Zimbabwe is offering excellent rates!

opinions4u

If you believe you can earn 16% in a foreign currency that's great.

1) You'll probably lose 8%-12% on moving the money in and out simply by the currency spreads on changing currency.

2) If the exchange rate goes against you (Turkey is particularly volatile for this) you're stuffed and the value of your money can half when converted back to Sterling.

Cook_County

Gains on the foreign currency are taxable as is the interest.