Kibkom North Cyprus Forum

If you get 10% on your T/Lira, and they take 20% on the interest gained.

So on say 50000T/L =5000 less 20% = 4000Nett

Question do they pay this monthly or only at the end of year one

Can anyone confirm please

Depends on what account you have. You can have various timed accounts from 1 month to year or more and they pay different rates of interest depending. If you have a monthly savings account you will be paid monthly, 3 monthly paid 3 monthly etc. Hope that helps.

Thanks for that Zarafet

Dear Gemini,
The interest rate does depend on how much you have invested and how long you wish to invest for. Interest can also be drawn monthly or rolled over with the capital amount. It is worth checking out a few banks, as I have found my bank became more competitve when they realised I was shopping around...
Hope this helps. Carey

Hi Carey

Good helpful info.

So far have shopped around and got offered 10% on £50K

Thanks

Make sure you put that amount over several accounts. There is a 20,000 euro per account safety (or so they say), seems you can have as many accounts as you like within the same bank, but they only guarantee 20,000 euros per account.

Hi Zarafet

Thanks, couldn't remember the exact amount , but having several accounts in same bank is one solution

Dont forget to allow for the tax they deduct at source.

Deniz 1
Already mentioned in my opening post

Hi new member just fact finding as seriously considering relocating to TRNC.

Can some-one give me information on this tax deduction at source on interest accrued on bank savings. Is there a starting point tax starts getting deducted or do they take the 20% from even small amounts of interest. If I do relocate I will wish deposit into a savings plan to boost my monthly income - so if they're going to deduct 20% I will bargain all the harder for a better % rate!!

I can only speak about my own bank - Creditwest.

The tax is only 10%, NOT 20%

It appears to be deducted from all interest earned, regardless of how much is in the account, or how much interest is paid.

Thanks Keithcaley Phew!! 10% Ok that's not too bad

Yes,Keith Is correct-the tax is deducted at source normally when your investment matures,it is called 'stopaj' on your statement and is deducted at the rate of 10% .
e.g. If you had TL10000 invested for a year fixed @ 10%-the gross interest is TL1000, less 10% Tax= TL100= Nett amount TL900.
That is my understanding anyway.

Cheers Philoz for confirming & also for the breakdown - at the end of the day the % is loads better that the UK.

Now have to do some thinking:- whether to leave savings in my Egyptian a/c @ 13.5%, less money transfer costs to transfer from Egypt to TRNC, against the best deal I could get there for putting savings into a/c in TRNC less 10% Hmmm . Wishing you all well

How it works
month 1 10,000ytl interest 83.33ytl tax 8.33 ytl net 75 ytl
month 2 10,075 ytl interest 83.95ytl tax 8.40 ytl net 75.55 ytl
month 3 10,075.55 ytl and so on

Don't forget the capital appreciation or depreciation as the exchange rate moves
The lira has depreciated over the last two years against sterling 2.20 ytl now 2.90 ytl

Thank you Wanderer. Lots to think about that's for sure . The only way forward to get a real feel of TRNC is to do a 'recce' trip & once there I can check banks, property, location etc.

Thank you Wanderer. Lots to think about that's for sure . The only way forward to get a real feel of TRNC is to do a 'recce' trip & once there I can check banks, property, location etc.

gross less 10% divided by number of days in month , remember some banks when topping up your account if more than two days past the monthly date of the original deposit will not pay any intrestest till the end of the second month , shop around and batter hard , its your money and you can still get over 10% dependant upon the amount you deposit .

merry xmas and good health to all for 2012