Micky Mouse Interest Rates?

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
08/02/2009 11:38

I have resisted the temptation to open up one of the hi-interest savings accounts here in TRNC available from (inter-aia) HSBC and Credit West. This because of advice from a neutral and independent financial advisor in the UK that such rates are in fact unsustainable, and could be (may not be!) in effect pyramids etc. The advice said that if the banks went under accouint holders would lose all their money.

Mrwilson



Joined: 31/10/2008
Posts: 470

Message Posted:
08/02/2009 11:41

The same interest rates also apply in Mainland Turkey. Take a look at http://www.finansbank.com



We have been using them for the last 3 years although slighty higher tax



A

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
08/02/2009 11:43

Geoff....it is obviously a real cause for concern and something to be wary of.....eggs and baskets springs to mind.

As far as I'm aware there are no safeguards for savers in the TRNC in the event of a bank collapse.



Even if banks don't actually collapse...a reduction in rates from an unsustainable 18% to a more realistic 8% would have a big impct on ex-pats who rightly or wrongly rely on their monthly interest from savings as income.

AndyP



Joined: 18/04/2008
Posts: 517

Message Posted:
08/02/2009 11:44

If you split your money across accounts so that they are no more than 20,000 euros. The Turkish central bank guarantees your money, so how can you lose?

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
08/02/2009 11:47

Wasn't aware of that Andy.....cheers.



Are ALL banks operating in the TRNC covered by this guarantee?

ian444


Joined: 14/01/2009
Posts: 71

Message Posted:
08/02/2009 11:53

I think the guarantee is from the TRNC central bank not the Turkish

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
08/02/2009 11:57

Have had accounts in NC for over 4 years now, all at 17% +. Never had a problem so far. 1 months interest in NC = 1 year in UK. Only problem is if you want to change back to sterling, rate must be lower than what you bought in at.

Mrwilson



Joined: 31/10/2008
Posts: 470

Message Posted:
08/02/2009 11:58

We have just been advised that HSBC have reduced there rate to 11.5 and Finans Bank in turkey are giving 14 instead of 21.5.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
08/02/2009 14:32

All rates are coming down following cuts in Central Bank Rates across the globe.



As for risk factor, all finacial investment is a risk and we consider that the higher rates here more than cover the risk. Just spread it around a number of accounts as the government guarantee is per account not per person.

biker-babe


Joined: 30/12/2008
Posts: 75

Message Posted:
08/02/2009 14:40

Geoff - No probs, keep your money with a uk bank and get .25%, there simple problem solved. Suzie

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
08/02/2009 14:49

all deposits under 20.000 euro's (per account) are guaranteed by Turkish central bank, so Geoff your advisors are not really that much cop are they ?



Nick

keithr


Joined: 20/08/2008
Posts: 720

Message Posted:
08/02/2009 14:52

Nick.



It all hangs on whether the TRNC government has the cash to support this claim.



I'll take the risk...

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
08/02/2009 14:54

negativenick



For bank accounts in the TRNC the guarantee is from the TRNC central bank and not Turkey

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
08/02/2009 16:58

I did not know that either, I might reconsider!

properperson


Joined: 15/03/2007
Posts: 35

Message Posted:
08/02/2009 17:44

mess 12 & 13 - the deposits are guaranteed by the Turkish central bank NOT the TRNC government - they also "police" the banks to make sure they are trading within the guidelines they set.



Now you know....







Nick

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
08/02/2009 18:22

H Geoff and all i hae just returned rom the uk. had a ong cha with my son in law whom i may add is a corporate stock brooker. he told me that if i have any money in trnc accounts to get it out asap. He felt it was very unsafe to keep becaus of the situation. I argued that we would b covered by turkey and the reply not on your live. We dont have any money as such just deal on a day to day buisnesss level and our investments are what we have had to lodge as a buisness for tax which we have to leave for 18 months and the money we show we have to run a buisness. I know many of you are so knowledgable with regards to the market but this worried me for all of you. I hope and pray that your guarantees are valid. How far can turkey really go.when all they really want is membership to the EU. Ask yourself this How old would your child be when you say make your way in the world. I guess a lot younger than 35

biker-babe


Joined: 30/12/2008
Posts: 75

Message Posted:
08/02/2009 18:48

This makes interesting reading:



http://en.wikipedia.org/wiki/Turkey#Economy



Lilli - What "situation" ??

ian444


Joined: 14/01/2009
Posts: 71

Message Posted:
08/02/2009 19:22

message 15

Nick





Two major banks confirmed to me in writing the guanrantee is from the TRNC central bank and not the turkish.

deecyprus4


Joined: 27/07/2008
Posts: 3452

Message Posted:
08/02/2009 19:24

Christ who cares as long as someone secures it...

ian444


Joined: 14/01/2009
Posts: 71

Message Posted:
08/02/2009 19:30

message 19



Dee you are correct providing the TRNC central bank has the funds to underight



this guarantee

clarets



Joined: 08/01/2009
Posts: 752

Message Posted:
08/02/2009 19:45

Hi Geoff,accounts are guaranteed by the TRNC central bank up to 20000E each.You could always keep your money in the "very safe and reputable" UK banks,which are being bailed out by our good selves as we speak,and gain less than 1% per annum.You always have the knowledge that we pay our bank executives lucrative bonuses for foisting financial armageddon on us! Bit of a no brainer really!

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
08/02/2009 19:48

properperson your message 15



"mess 12 & 13 - the deposits are guaranteed by the Turkish central bank NOT the TRNC government - they also "police" the banks to make sure they are trading within the guidelines they set.



Now you know.... "



is utter rubbish take a look at the following



http://www.kktcmb.trnc.net/ENGLISH/regulations/sdifl/sdifl40-01.html

ian444


Joined: 14/01/2009
Posts: 71

Message Posted:
08/02/2009 20:05

message 22



thank you for the link very interesting but it also clearly states





Interpretation

2.

In this Law unless the context otherwise requires





“Central Bank” means the Central Bank of the Turkish Republic of Northern Cyprus.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
08/02/2009 20:10

Well i thought it was the central Turkish Bank too and i'm usually right, but am going to ask Gary Monger.



Nick

clarets



Joined: 08/01/2009
Posts: 752

Message Posted:
08/02/2009 20:21

In this case you ARE wrong.It is the TRNC central bank.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
08/02/2009 20:23

Just read the link - looks like it is actually an insurance fund set up by the banking system...

clarets



Joined: 08/01/2009
Posts: 752

Message Posted:
08/02/2009 20:37

Thats the one.......set up by the TRNC central bank!

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
09/02/2009 09:56

Well that safety net IS good news. However, I still don't understand how these banks can offer such high interest rates. I assume, like all banks, they lend out the money (our money!) at a higher rate and so make a profit. So, is that correct, and if so what rates are they charging to TRNC borrowers??

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
09/02/2009 11:28

Geoff,



There are two main sources of bank income being mortgages at rates you have already guessed at and credit cards which right now are a booming entrprise.



Our own experience was to open accounts with HSBC which may have lower rates but secured by a world wide network. Still use them for all inter bank transactions to UK because of free rates.



Then worked out all the options, checking risk factors and then branched out. Remember to spread your funds across several accounts for piece of mind. You must check if accounts are for a fixed term or graded interest rates the more you deposit. Many now have web sites where you can check all the info.



Of course everyone has there own views as to which bank to use so you have to make your own mind up and not let yourself be swayed, that way you cannot blame some one else!!

Mrwilson



Joined: 31/10/2008
Posts: 470

Message Posted:
09/02/2009 11:32

check out hsbc.com.tr



We opened a new account recently in lefkosa with the new branch which opened last year. They are very helpfull i have the email address if required.