High interest bank accounts?

whynot


Joined: 05/07/2007
Posts: 12

Message Posted:
08/08/2007 11:55

We're bringing over about £5000 to theTRNC, but won't be spending it on our villa until next spring. We have accounts at the Garanti Bank but we are hoping we could get better interest elsewhere - any thoughts?

namus


Joined: 23/06/2007
Posts: 74

Message Posted:
08/08/2007 12:14

Keep it in sterling as the local bank interest rates rarely keep pace with devaluation.

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
08/08/2007 12:29

Devaluation namus, when we were over ther last September we were getting 2.75 lira to the pound, now its 2.45 today. What school did you go to.

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
08/08/2007 13:03

Hi whynot,

% depends on how much you put in. Garanti is 17% on 25000ytl or more, 15% on less. I was told of another bank when over in May at 18% and when I mentioned it to Aylin my rate went up from 16 to 17%. Cant remember the other banks name but no internet banking which i find garanti has better than RBS here.

BB

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
08/08/2007 13:03

Forgive me, but isn't that 12 % depreciation?



MC

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
08/08/2007 13:31

Hi MC

I thought I had balls it up for a minute, maybe I have but if I was getting 2.75 to the £ last year and now I'm getting 2.45 then the TL must be increasing in value (in relation to the £). If it was devalued surely you would be getting more TL to the £.

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
08/08/2007 13:36

Hi Breezyboy,

I'm not quiet clear on that, does Garanti do internet banking and have you tried it yet. Do you know what the trnc tax they charge on that interest.

Scots Git


Joined: 08/08/2007
Posts: 1

Message Posted:
08/08/2007 14:48

Hi,

Opened both YTL and GBP accounts about a year ago.

Garanti Bank does both internet and telephone banking, check web site http://www.garanti.com.

In the Kyrenia branch go upstairs where there are 2 English speaking reps to help expats.

I had no problem to open the accounts or to register with their internet banking

SG

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
08/08/2007 15:03

Thanks SG

We're out there early October, I've had a look at a few and I seem to be getting good reports about that one.

M

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
08/08/2007 15:06

Marvo,



I'm no financial wiz either believe me, I just know £1000 last year bought you 2750 Ytl and this year it buys you 2450 Ytl this year.



Now if you put it in a local bank last year, it would be 2750 + 15% = 3162 Ytl



So I think it's how you describe depreciation. and I won't even try, cos I have no idea



Steve

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
08/08/2007 15:52

OK steve,

We'll stop this now before we dig bigger holes for ourselves, I dont know what we're trying to prove here, has the pound devalued or the TL.

I think I'm right but pass the had with the big 'D' on it and I'll stand in the corner.

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
08/08/2007 16:12

Yip i agree, have you got two hats?

namus


Joined: 23/06/2007
Posts: 74

Message Posted:
08/08/2007 17:35

I was taking a longer term view as the turkish currency/economy has been a disaster for the past 30 years.



When i first visited NC (late 70s) it was roughly 2 old Lira to the pound. It devalued relentlessly to the hundred, thousands and then millions to the pound.

My brother in law deposited approx £8,000 worth of Lira (gifts from wedding) at 35% pa with local bank and 5 years later it converted back to around £2000.

Turkey created the Yeni Lira at 1,000,000 to old Lira to make the currency more maneagable.



Let's hope the days of rampant inflation are under control but most Cypriots prefer good old sterling. Mind you it was fun ordering an Efes and slapping down a few million on the counter.

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
08/08/2007 17:45

yes namus, they tell me the crisps were a hell of a price as well.

lovingcyprus


Joined: 02/03/2007
Posts: 1272

Message Posted:
08/08/2007 23:37

Namus is correct.



So if the ytl is now at 2.60 to the £ and lets say in 2 months it is 3YTL to the £ that is devaluation and the money you invested is worth less in £'s. But if the YTL is at say 2.30 to the £ in 2 months it (the YTL) has got stronger so the money you invested 2 months ago has inceased in £'s terms

McSteviet



Joined: 11/05/2007
Posts: 1089

Message Posted:
08/08/2007 23:54

Lovingcyprus,



You lost me.



MC

Avril


Joined: 21/05/2007
Posts: 164

Message Posted:
09/08/2007 01:34

Hi Guys,

If you are investing your money at this higher rate of interest and do not intend to exchange it into GBP (you are investing it to use in TRNC) then the interest rate is good and your investment will grow at the stated rate of interest per annum. However, if you do intend to exchange it into GBP then you are exposing your investment to foreign exchange risk. As Namus points out, the YTL has been an unstable currency for 30 years. On the otherhand, the GBP has proven to be quite stable, therefore, I consider it a far safer option.

If you have a contract based on GBP then it is usually safer to opt with GBP investments. The last thing you want is the worry that you lose money on your investment due to adverse foreign exchange rates.

You also need to consider the taxation implications on the interest earned. In the UK you will pay tax on personal savings at either 0%, 20% or 40%. I'm afraid I don't know the taxation implications of savings income in TRNC.

Hope this helps!

Avril

(P.S. Hope I haven't bored you!!!)

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
09/08/2007 14:24

HiMarvo,

Yes I have tried garanti internet banking, it has more options than RBS at home!

The tax is about 8% deducted at source.

Aylin is the young blond lady upstairs at Garanti, no appointment required. Perect English and unbeleivably helpful.

A fax moves money from sterling to dollars to YTL immediately.

They give top rates of exchange.

The lower theYTL figure to £ the more you get when you transfer back to £

If this figure goes up you get kess.

It got a lot stronger last summer gettting as high as 2.94 in June 06 so if you changed £ into YTL then and changed them back last week at 2.55 then you did very well, about 15% extra on tiop of your interest.

Interest is paid monthly with one month notice but instant access.

I should ask for commission!!

BB

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
09/08/2007 15:11

Thanks BB,



I'll get you an Beer down the harbour, with all this interest I'll be making, when I get over.

M

Marvo


Joined: 30/04/2007
Posts: 194

Message Posted:
09/08/2007 15:20

Thanks BB,



I'll get you an Beer down the harbour, with all this interest I'll be making, when I get over.

M

whynot


Joined: 05/07/2007
Posts: 12

Message Posted:
09/08/2007 17:23

Thanks to everyone for your advice. I'm glad nobody suggested a part share in a bar with a guaranteed return of 100% in the first year!!