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turkish rates of interest

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  • 10-05-2010 11:12am
    #1
    irishjay
    Registered Users Posts: 347 ✭✭


    does anyone use a turkish bank and why are they so high/ i think you need property there 1st?


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    #2
    halkar
    Registered Users Posts: 1,257 ✭✭✭halkar


    Average interest rates for Turkish Lira are around 7 to 8% depending on the amount and days in agreement. Turkish Central Bank rates are at their historical low and rises expected this year which will also increase the rates in deposits. You will also take the risk of currency rate changes which may or may not be in favour of you. However you do need to be resident to open an account or an agent to this for you that are resident in Turkey. Their banking sector is strong and were not affected by the worlwide recession with strong profits last year.

    It can be a nice little earner if you buy TL while Euro is high and deposit for at least a year. If the currency is not in your favour you can increase the term by the months while still earning interest. This would need a lot of attention though but the rewards can be high with earnings from both bank interest and currency fx. 3-4 years ago during country's growth was high Euro went as low as around 1.5tl mark. Last year it went as high as 2.2tl and these days around 1.9tl. As the country going in to growth again it is destined to go lower. If the world markets doesn't go belly up again.


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    #3
    irishjay
    Registered Users Posts: 347 ✭✭irishjay


    interesting. do you use them banks yourself? cheers jay


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    #4
    halkar
    Registered Users Posts: 1,257 ✭✭✭halkar


    irishjay wrote: »
    interesting. do you use them banks yourself? cheers jay

    Nope, I do not have enough money to make it worth the hassle :)


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    #5
    Joe Schmo
    Registered Users Posts: 63 ✭✭Joe Schmo


    For what it's worth, it may be possible to open a non-domestic account in a foreign bank and earn high interest.

    December 09: local banks in Uganda were offering 10% on USD on deposit (14% on local currency). Again it was for residents but foreign banks still require global currency.

    Best of luck


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