turkish bank accounts

djmagic

we currently have money invested in a turkish bank (Garanti Bank) and have noticed that the rate has dropped from 11% dec 2011 down to 7.75% january 2013. is this trend due to continue do you think.? im no financial wizard and I know there are no crystal ball out there but and thoughts are welcome. thanks in advance.

labp04

A thought occurs: Interest Rate = 7.75%; Turkish Inflation Rate = 6.16% so, guess you are still, at least theoretically, making some money. Having said this, it might be worth checking out the rates available from other banks eg from this list:

http://en.wikipedia.org/wiki/List_of_banks_in_Turkey

but this looks as if it might be important reading too:

http://www.moodys.com/research/Moodys-takes-rating-actions-on-Turkish-banks-following-sovereign-upgrade--PR_249326

One of the reasons for the interest rate reduction is that Turkey has been making some efforts to reduce its rate of inflation which has been high for a number of years.

Enjoy Turkey! :cool:

agrinnall

Presumably though that 7.75% is gross, so if there's any tax to pay on interest earned then that could take the net below the inflation rate. And the other thing to consider is whether the money is being used in Turkey, or if there is an intention to transfer it to the UK, in which case exchange rate and transfer charges come into play too.

djmagic

i currently live in turkey and yes 7.75% on top then 15% tax to pay.