interest rate on deposits

chelwood · Post by **chelwood** » Fri 31 Jan 2014 10:02 am

since the recent rise in base rate , any offers on whats now being offered by the banks????????????????????????

Bert · Post by **Bert** » Fri 31 Jan 2014 2:36 pm

In my opinion they would be daft raising them more than 1 or 2 points!!!!!!

cyprusishome · Post by **cyprusishome** » Fri 31 Jan 2014 2:53 pm

I suggest that the banks here will not raise their rates because they have little to do, directly, with the Turkish economy.
Any one have thoughts on subject?

come_on_aylin · Post by **come_on_aylin** » Fri 31 Jan 2014 2:58 pm

Iktisatbank have raised their rate to 10.25%. HSBC don't seem to have raised their rate, don't know about any others.

laptatony · Post by **laptatony** » Fri 31 Jan 2014 3:54 pm

Most are waiting until next week as they are expecting further increases in the Central Bank rate as the latest stimulus has not worked.

JBA · Post by **JBA** » Fri 31 Jan 2014 4:55 pm

HSBC have raised their rate by a niggardly 1%.

Butterflyaway · Post by **Butterflyaway** » Fri 31 Jan 2014 6:01 pm

My account at Creditwest was REDUCED from 8% to 7% on January 30th.

Maybe it is to pay for all their sponsorship?

MVP · Post by **MVP** » Fri 31 Jan 2014 7:20 pm

Within a month the Turkish government will have capitualted and it will be 5+ the l to the £.
Get out while you can

Munchkin · Post by **Munchkin** » Fri 31 Jan 2014 7:36 pm

Jesus wept another clairvoyant.

Jonnie · Post by **Jonnie** » Fri 31 Jan 2014 7:48 pm

Munchkin wrote:Jesus wept another clairvoyant.

BLUE BUTTERFLY · Post by **BLUE BUTTERFLY** » Fri 31 Jan 2014 10:47 pm

chelwood wrote:since the recent rise in base rate , any offers on whats now being offered by the banks????????????????????????

I have an internet, lira, timed account at Garanti bank, current interest rate is 10.4

frontalman · Post by **frontalman** » Sat 01 Feb 2014 10:14 am

LaptaTony, I would say it has worked, as the rate has stabilised for the past few days. There's no way way it will get back to less than 3 to the pound. Best case scenario is that it stays level or maybe falls a bit over the next two years and the interest can make up the difference. Sayin Simsek may have to raise rates a bit more though.

Jonnie · Post by **Jonnie** » Sat 01 Feb 2014 12:43 pm

I think a new government may make a difference. Are there not elections soon?

Dalartokat · Post by **Dalartokat** » Sat 01 Feb 2014 8:24 pm

On Al Jazeera news this morning a programme called Counting the cost interview the Turkish Finance Minister on this subject and also an insight as to why this has happened.

http://aje.me/1iiU5P5

frugal90 · Post by **frugal90** » Sun 02 Feb 2014 4:13 pm

if you have money in a time deposit -is the rate at which you took out the time deposit fixed or is it variable -for example I have an annual time deposit with iktisat bank -if they have increased rates will this apply to my account?

thanks

owl · Post by **owl** » Sun 02 Feb 2014 5:50 pm

frugal90

Have you asked them?

Owl Lady · Post by **Owl Lady** » Sun 02 Feb 2014 6:09 pm

From what I understand with Credit West the rate remains the same as it started to the end of the guaranteed period, remember if it had gone down, you would still have got the same higher rate of interest.

come_on_aylin · Post by **come_on_aylin** » Mon 03 Feb 2014 8:24 am

frugal90 - Owl Lady is correct, the rate in force at time you started the time deposit is the one you will get when it matures. If you close the time deposit before it's maturity date you will not receive any interest.

frugal90 · Post by **frugal90** » Tue 04 Feb 2014 10:03 pm

thanks all for your help- I e mailed iktisat bank and that is the answer I got- I am uk based and not out until April
regards

chelwood · Post by **chelwood** » Wed 05 Feb 2014 12:53 pm

shopped around and ended up staying with my main bank here , managed to get 12% so reasonably happy for now but will keep under review .

squashmad · Post by **squashmad** » Wed 05 Feb 2014 6:19 pm

Which bank is that chelwood?

mahdel · Post by **mahdel** » Wed 05 Feb 2014 11:21 pm

Replied but apparently deleted it accidentally. Anyway, I was just going to suggest to anyone who doesn't need regular access to their savings (maybe you take out money once a year or just have one account for saving and one for bills etc.) Near East Bank offered me a great deal when I signed up where whatever the highest interest rate for the year is, that's the rate you get for all 12 months if you're not withdrawing from the account very often (it may be you have to save for 12 months to get the deal before you can take any more out, so it's not very useful if it's money you need regular access to). I was getting around 10.5% when I opened the account a while back but ended up with 11 or 11.5, can't remember, for the year because it went up to that rate at one point. I imagine they're back up around there or 12% and so that will be my interest rate for the year, assuming it doesn't go up. It's a decent time to convert money from pounds, imho. The government is taking steps to stabilize the currency so these crazy 4:1 exchange rates will go down at some point. It could be that it gets worse before it gets better though, I admit. Anyway, I've been quite happy with Near East Bank as a savings bank, though I use Is Bank for my current account as it has more branches and atms available.

michelle3012 · Post by **michelle3012** » Sun 16 Feb 2014 2:10 pm

Which bank Chelwood?

cyprusishome · Post by **cyprusishome** » Sun 16 Feb 2014 2:49 pm

Ask yourself the question, how does a very small bank offer rates up to 2% higher than the larger well established banks? Where is their incoming arising and is it sustainable?

How many of you know about the case of FMA where rates way over the norm led to people piling in with life savings and have now lost the lot.

chelwood · Post by **chelwood** » Mon 17 Feb 2014 11:22 am

universal 12% three months notice min 1m tl.

cyprusishome · Post by **cyprusishome** » Mon 17 Feb 2014 2:20 pm

Good response chelwood, Universal are one of the banks who have caused mega problems with defaulted mortgage payments from builders leaving buyers fighting for their properties! A good example of potential high risk.

High yield means high risk. If you can afford to loose money then gamble on higher risk. Those with FMA could not afford to loose money but they were persuaded to gamble, their loss hundreds of thousands in some cases in some all their savings.

Our savings are as safe as the next person in the present economic climate.

Jonnie · Post by **Jonnie** » Tue 18 Feb 2014 12:30 pm

Had Capital Bank call today, they offered 10-11% on over 100,000tl. A little bit more than I am getting at the moment but not comfortable with a Cypriot bank TBH

PapaBravo · Post by **PapaBravo** » Tue 18 Feb 2014 7:15 pm

Jonnie, if not a Cyprus bank, which bank do you use?

Philoz · Post by **Philoz** » Tue 18 Feb 2014 7:41 pm

Papa-I think Jonnie is referring to a 'southern bank'

cyprusishome · Post by **cyprusishome** » Tue 18 Feb 2014 8:13 pm

Use Turkish Banks such as HSBC, Garanti, TEB, Is Bank, or use Islamic Bank. IMO far safer than the upstarts such as Capital, Neo and some of the longer standing TC Banks. Higher interest generally means higher risk!

chelwood · Post by **chelwood** » Tue 18 Feb 2014 8:56 pm

cyprusishome , i assume you are authorised to give such investment advice , i shoped around choose three banks , i did look at their asset base and last accounts and asked numerous financial questions , none of the banks were in your list of recommendations so maybe i should reconsider , i think not and i also would like to ask what makes you an expert and why should others take note of what you have posted ???

Muad_dib · Post by **Muad_dib** » Tue 18 Feb 2014 9:59 pm

Do we now need authorisation to give an opinion on here.

PoshinDevon · Post by **PoshinDevon** » Tue 18 Feb 2014 10:36 pm

Please do not let this thread turn into an argument about who is/is not qualified to give investment advice or which bank is/is not safe to invest with.

It is an individuals responsibility to carry out their own "due diligence" and decide for themselves wether or not to invest with a particular bank. Some people are more cautious, whereas others are more willing to take a higher risk. It is an individuals choice. If necessary then anyone wishing to invest can also look to take financial advice from a registered and authorised advisor.

Thank You

Jonnie · Post by **Jonnie** » Tue 18 Feb 2014 10:49 pm

PapaBravo wrote:Jonnie, if not a Cyprus bank, which bank do you use?

I use a Turkish based bank. Personal choice really and also use Turkish based insurance companies. I feel more comfortable that if the poop hits the fan they will both be more secure.

cyprusishome · Post by **cyprusishome** » Wed 19 Feb 2014 7:01 am

poshin devon I would just like one "right to reply" in stating that in my posting I used the acronym IMO - IN MY OPINION. That is not advice and I can see no reason for the tirade fired in my direction by another poster.

Hippocampus · Post by **Hippocampus** » Wed 19 Feb 2014 6:49 pm

Cyprusishome, not all of us are up on OMG, IMO (those are the only two I understand, yours is a new one!) etc. Keep seeing LOL on this forum, ??? Makes me really feel my age.

I appreciate all the replies on this thread, there is no compulsion to take the advice in any of them, but good to get lots of IMOs

JBA · Post by **JBA** » Thu 20 Feb 2014 10:45 am

I see HSBC put their interest rate up by 0.5% today. Every little helps and I suspect (IMO) that these higher rates will last quite a bit beyond the eventual rise in the value of the lira and the consequent reduction in exchange rate. Personally (IMO) I think they haven't finished going up yet so I am sticking to a 1 month account so I pick up the rises as the account recycles.

The real trick will be to guess when the rates start to fall and get my money into a 12 month account in time.

solic200 · Post by **solic200** » Fri 21 Feb 2014 12:14 am

With all the talks about a settlement what will happen with the banks and money then,will it still be tl or euro or a new currency.
I have always been with cypriot banks but I think its time in my opinin to go for a turkish bank..
Anyway everything can change with the elections approaching.

JBA · Post by **JBA** » Fri 21 Feb 2014 6:20 am

I think in the event of a settlement it would almost certainly mean the euro even though I think (IMO) it would be a disaster for North Cyprus - as indeed would be joining the EU. It would be an even bigger disaster if that happened now with the exchange rate as it is. North Cyprus has no control over the value of the lira and Turkey would not help just to suit the timescale of re-unification - their own interests would predominate.

But if the North stays tied to Turkey then be sure that when (if) Turkey joined the EU they would manage the exchange rates in their (and our) favour before opting into the euro.

JBA · Post by **JBA** » Thu 13 Mar 2014 1:52 pm

HSBC went up another 1/2 point today - it's now 10% on a 25 day (or longer) account.

chelwood · Post by **chelwood** » Fri 14 Mar 2014 12:20 pm

JBA very interesting post
For information this week I was in consultation this week with one of the governments senators about personnel matters, but into the conversation I felt it was prudent to find his opinion on ongoing issues, mainly does he see the TRNC becoming part of the EU. His reply was very pragmatic, a firm yes and surprisingly within 12 months. I am sure that everyone is aware that the returns on the euro are far less than the current interest rates of the turkish lire, and I am sure the government must be aware of the potential implications arising from this. The only thing I suggest at the moment is watch this space and see what happens. I for one would look elsewhere if this where to be the case. When I say look elsewhere I do not mean a move of residence I mean a move of liquid assets.

Aitchie · Post by **Aitchie** » Fri 14 Mar 2014 2:37 pm

I would assume that even if the North changed to the Euro that a TL account would still be possible with a TC bank, the downside would be if you had to change to Euro to withdraw your weekly/monthly living allowance then the current exchange rate as it is now would not be favourable to you.

raffs · Post by **raffs** » Fri 14 Mar 2014 10:31 pm

chelwood wrote:JBA very interesting post
I am sure that everyone is aware that the returns on the euro are far less than the current interest rates of the turkish lire,

True chelwood if you're referring to the returns from interest paid on YTL deposits BUT not with regards to the depreciation suffered when compared to a basket of currencies. Earn 10 percent interest (9 percent after tax) per year on your YTL account and loose on the currency depreciating by 25 percent per year. Now I know that there has been a few good years where the Lira has outperformed the depreciation effect compared to the interest paid but that's history now and most forex economist would say cheap money from QE and Fed printing that was the source for enabling this growth is being wound down. We are approaching a very different landscape.

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