TRNC Banks, do you play the interest chasing game?

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
09/12/2011 14:24

We have monthly savings accounts with two separate banks and after reviewing our situation I decided to move our savings from one of the banks to the other for no other reason than that logistically it makes our life easier plus with the new funds going into our existing account we were obviously offered a better interest rate. However with the bank that we were withdrawing our funds from and after going in to withdraw the money they offered me 1.25% more on the money i have with them and if I transferred all of my savings from my original bank to them then they would promise me 3% more than I have been promised by my original bank. Is this a case of only offer the best interest rates when you have to or does anyone know whether banks uprate your interest rates whithout you asking.

AJ

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
09/12/2011 18:45

Now the evening shift is starting to log in it is time to push this back to the top.

Does your bank automatically up your interest rates when the rates go up or do you have to threaten withdrawal of funds to get a better interest rate?

AJ

Tango1


Joined: 19/02/2011
Posts: 1151

Message Posted:
09/12/2011 18:53

We've never, ever had any of out interest rates "upgraded" and we're with 3 banks. I think it's time I paid them all a visit!!

ttoli


Joined: 24/03/2007
Posts: 1172

Message Posted:
09/12/2011 18:58

recently moved to Creditwest (Opp Mr Pound), Speak to Turan, 9.5%, tied up for 6 months

LaptaMike


Joined: 07/10/2009
Posts: 1679

Message Posted:
09/12/2011 19:02

AJ, are you suggesting there are many expats working illegally? ;-)



To get back to your first post, HSBC have pretty poor interest rates even if your a Premier customer with a sizeable amount in accounts.

rowlo



Joined: 12/10/2008
Posts: 4796

Message Posted:
09/12/2011 20:27

they need to recoup the 10.5 million they were fined thou mike ?

natalie


Joined: 03/05/2009
Posts: 323

Message Posted:
09/12/2011 21:44

AJ had this happen some years ago when we were in business in the UK, threaten to leave for a better interest rate and all of a sudden your existing bank can offer you a better deal. Same happened to us here a few years ago. Were with HSBC for some six years, was offered a better rate by another bank and all of a sudden HSBC upped theirs, not enough though so we left. Seems to me they all have room for manuver AND that it pays to put them over a barrell for your own ends. Try it you have nothing to loose.

martinD41


Joined: 06/09/2010
Posts: 3001

Message Posted:
09/12/2011 22:12

msg2

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
09/12/2011 22:22

Would love to know who offered you an extra 3% and also what rate would that equate to ?

dizzycows


Joined: 12/05/2009
Posts: 2736

Message Posted:
09/12/2011 23:05

Never believe all you hear regarding what any one receives in interest rates unless you actually can see the sum in writing... It also would depend on how much you have invested in an account...



Loads of hear say regarding how much banks are willing to give .... Especially banks in NC ....

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
09/12/2011 23:09

Perhaps AJ would be kind enough to enlighten us.

rowlo



Joined: 12/10/2008
Posts: 4796

Message Posted:
09/12/2011 23:21

if it sounds to good to be true , it probably is , as me old papa once said ?

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
10/12/2011 09:56

The bank that revised their interest rate offer was Garanti and the manager that I dealt with told me that interest rates were on their way up again. I will be going to my other Bank on Monday to discuss this interesting situation and will update after.

dizzycows


Joined: 12/05/2009
Posts: 2736

Message Posted:
10/12/2011 10:21

So what is your actual interest rate on the monies??



Say you for instance £10,000

or £50,000

or £100,000

or £500,000



Some ball park figure from the original post on the actual interest already being paid, and the new % ? then others can distinguish if they are not getting a good deal..



Waiting in anticipation ...

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
10/12/2011 10:50

Thanks AJ....DC, he has said that he will have more info on Monday.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
10/12/2011 11:01

Dizzy

I only deal in TL. Sterling has a different set of interest rates.

AJ

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
10/12/2011 11:50

In my experience here, the only time you get offered a higher rate of Interest is when you threaten to move your funds elsewhere. This has happened to me back in the past (2007/8) on a number of occasions when rates at the various banks were more variable. I previously moved my money anyway when this happened. I have to say that I found this practice slightly disconcerting & unprofessional. The bank that you were threatening to move from would usually match the interest rate you were being offered elsewhere, or even slightly better it, but not by as much as 1.5%? more, even back when interest rates were double what they are now. So I'd be surprised if a bank would offer that much more now.

You will get a higher rate if you have a very large sum in various accounts with a bank, but you will have to negotiate. They will never just pay it.



ctd.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
10/12/2011 11:52

Any upward movement in interest rates here will be determined by what happens to the Central Bank rate in Turkey. I think they meet on 22/23rd of each month. So far, rates have not been increased. Rates were last altered in December 2010 when they reduced by 0.50%.

With regard to getting a higher rate for tying your money up for a longer period. Unless the difference is at least 1% more than the monthly rate, you will hardly make any more than the monthly rate if you leave the monthly interest on deposit so it compounds. if you tie your money up for 3, 6 or 12 months you will only be paid the simple interest at the end of the period. The difference between monthly & annual interest rate in TL is generally very small in percentage terms compared to the monthly rate. Some Banks pay more for annual deposits but many are paying far less.

In percentage terms the differences in interest paid between monthly & 6 monthly or annual are far more significant on Sterling Time deposits.

dizzycows


Joined: 12/05/2009
Posts: 2736

Message Posted:
10/12/2011 14:48

scruff... Exactly...

juliamoons



Joined: 14/05/2009
Posts: 849

Message Posted:
10/12/2011 15:01

What seems so silly about the interest rates is that, we all have friends who are with different banks getting better or worse interest rates and of course we talk about it. When I was told by one friend he was getting 9 1/4 with about the same amount of money on monthly interest, I was interested enough to visit his bank. His bank of course offered me the same deal (at that time I was getting 8%) so it made a reasonably difference. I then when back to my bank and asked them to transfer my funds to my new bank accounts in new bank. They asked me how much they were offering and I told them 9 1/4%, which then prompted them to offer me 9 1/2%. Is this not a crazy situation, a bit of a dutch auction if you ask me, I am sure I could have possibly held out for 10%.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
10/12/2011 15:46

juliamoons

Thanks for you posting, it confirms much of my thoughts on the situation.

AJ

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
10/12/2011 18:48

juliamoons

I'd be interested to know who is paying 9.25 on monthly deposit. The only bank that I know of doing a rate over 9% is Yakin Dogu, unless you have lots of money at the same bank & even then they seem very mean with any extra, unless that is, that I am not pushing enough?

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
10/12/2011 18:49

Is anyone getting beter than 11%? - 12 months on a dcent amount of money.



If so what, where, for how much of a deposit?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
10/12/2011 19:22

11%. You must be joking, unless you know something I don't?

Highest rate currently is Yakin Dogu. 9.25% monthly & same for 3 mths, 6 mths & 1 year. These are the advertised rates.

They are paying 0.75% more than any other Bank for any period.

Artam Bank in Lefkosa said they were paying 13% back in Jan 2011, but have no website, no Internet banking & no English. They probably weren't paying this much anyway.

Turk Bank are only paying 6% monthly & annually & 5.75% on 3 & 6 mths.

Most of the local banks are paying between 8% & 8.75% on monthly deposits.

Nearly all the local banks have websites & their advertised deposit rates are published on most of the sites.

Unless you have a large sum where you might get 0.25 or 0.50% more or you've been offered a better deal to stay put, you won't get more.

You need to be careful not to be mislead with the mainland bank websites. They pay higher rates in Turkey than in the TRNC & publish Turkish rates on their websites.

juliamoons



Joined: 14/05/2009
Posts: 849

Message Posted:
12/12/2011 16:23

Well this happened around 3 months back and I am still getting a good rate of interest on monthly. But that depends on how much you deposit with them. I don't really want to go into numbers but I think my bank is a safe bet, double A rated may give you a clue.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
12/12/2011 18:25

I can't imagine why you want to keep the name of the bank concerned a secret. Sound like you may be talking about Creditwest?

suehowlittle


Joined: 31/10/2010
Posts: 1202

Message Posted:
12/12/2011 18:42

You can get more than 9% if you push them but......instead of monthly (31 days) H S B C now want to only pay the higher amount of interest if you will collect every 42 days. Wish I was clever enough to do the math - I suspect that this probably means that you are getting 8% every 31 days and that this is just a clever marketing tool.



Very interesting to hear the differing views of people's experiences.



Anyone on here clever enough to do the math?

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
12/12/2011 18:52

Whilst in Creditwest Karaoglanoglu today I was asked if I would like to take up their latest campaign which is paying 10% monthly for 6 months. You get paid the interest monthly but cannot touch the capital for 6 months. This is obviously for new deposits and is only available until 31st December.

pollymarples


Joined: 08/08/2010
Posts: 1778

Message Posted:
13/12/2011 07:35

To answer the question AJ. A bank already mentioned on here does not automatically increase your rates and will offer higher only when you are threatening to leave. Some months ago I moved my sterling from them and told them I would be back on the anniversary date to move the lira. They were expecting it this time.

The assistant told me that he had been told, 'if your lira goes out the door, so do I' NO PRESSURE THEN.

They did increase my interest from 8 to 9.5% and I stayed. On the anniversary date, my money is definitely leaving, I know if I threaten it will be increased, but frankly, a Bank who operates that way has no loyalty to existing customers.



Asbank are now offering 9% normal and 9.5% over 100,000 lira and always changese your rate, up or down automatically, you do not have to negotiate.

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
14/12/2011 13:44

AJ, Did you get the extra interest ?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 13:57

re. msg 28

J&J interesting that. It seems that Karoglanoglu branch of Creditwest is treating its customers in a different way to Catalkoy branch & not for the first time as far as I can see. CW have kept this campaign very quiet.............. It's not on their website as far as I'm aware, even in Turkish?

I'm starting to think that all the Banks here use sharp practice when it comes to Interest rates & exchange rates too. They only respond to competition & threats. How unprofessional is this.........

Looks like my money & I will shortly be voting with our feet.

deputydawg


Joined: 30/03/2010
Posts: 1727

Message Posted:
14/12/2011 14:40

The banks certainly play the interest game to their advantage with my money. Until recently I could present a UK cheque for credit to a TRNC sterling account and it would clear within 21 working days. Currently they are taking seven to eight weeks to clear when my UK account has been debited early in those periods !

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
14/12/2011 15:29

Eager

Re message 30.

Yes my original bank upped the interest rate by another 1.5% but I asked to have that guaranteed because I have heard of customers of other banks that have been promised certain interest rates only to find that they drop down again after a month or two regardless of the Central Banks interest rates.

In theory any interest rate you are given should be tracked against the Central Bank's rates but sometimes it appears as though this does not happen with some banks.

One question I have is where on the internet can I view the Central Bank's interest rates so that I can be sure that my savings interest rates are being tracked correctly?

AJ

david9


Joined: 09/09/2008
Posts: 358

Message Posted:
14/12/2011 15:35

Where is the Creditwestbank Rep now? to answer some of these highlighted problems.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 15:39

msg 32

deputydawg. My bank, maybe the same bank, also used to accept a UK. cheque sterling & clear it, FOC. This took around 21 days & this was subject to the proceeds on arrival goin g on deposit for at least 1 month. That was fine by me. In fact when I moved my banking there, this was one of the reasons. No amount of cheque limit was specified, but the cheques were usually about £2k & always move than £1k.



Then noises started to be made about what my UK. bank was charging them & finally I was told that the cheque had to be for at least £5k. This meant my new funds were sitting mouldering in a UK. account. I have now found a cheap way of moving money over here as & when I like at £500 per time from the HSBC ATM machines, but with no ATM withdrawal charges. This method suits me much better.

Salamisboy


Joined: 20/03/2011
Posts: 54

Message Posted:
14/12/2011 15:43

My golly, with rates payable around 10% just how much are they charging people for mortgages and business' for borrowing? No wonder this little state is in a mess and retail prices so high.



I see HSBC are mentioned in the mix - I might trust putting some money with them, unless they are somehow ringfenced from the remainder of theHSBC group but I wouldn't trust any Turkish bank if they are paying these sort of rates - their default rate must be horrendous.



Sb.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 15:54

Your clearly fairly new here in the TRNC.



Banks here & in Turkey once paid 50% per annum interest. However both countries were suffering with hyperinflation back then. Back in early 2008, Banks were still paying over 20%.



You won't get a UK. type guarantee with deposits here. They will be subject to the TRNC Central Bank rules & the same in Turkey, which means you should have no more than 20,000 euros or equivalent in each account. You can have as many accounts as you like with each & every Bank.



Since the Banking crisis in 2001, which affected all Banks here & in Turkey, these guarantees have been put in place & honoured. Unless anyone can show written evidence to the contrary?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 16:11

msg. 33. AJ. This is the link to the TRNC Central Bank website.



http://www.kktcmerkezbankasi.org/



The rate is currently 5%. It dropped from 5.5% to 5% last time on 27th December 2010. No movements since then. The rate here tends to follow the Central bank rate in Turkey but the rates are not identical & the timing of changes here follows what happens in Turkey.

The rate is shown on the home page on the right hand side, 3rd box under 'Yasal Karşılık Faiz Oranları'



Interest movement history table is provided if you select 1st 'Faiz Oranlari' on the LH side drop down menu & then 'Mevduat Faiz Oranlari' on the next page.



BTW. You are right to be wary that your special rate will not last. This has happened to me before. I moved my money to Turk Bank Limasol, only to find that they then put their rates down, 2 mths running & you then have the hassle of moving it again.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 16:24

Incidently, the Interest rate history table shows that on 7th May 2002, the Central Bank Interest rate dropped to unbelievable 38% !!!

And apart from a slight blip in 2006/7, it's been going down ever since.

Local banks (except Turkbank) have always paid far more on deposits than the Central Bank rate.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
14/12/2011 16:40

scruff

Thanks for the link and thank you every one else for your input.

As long as I can track my savings interest rates against the TRNC Central bank then I can make better informed decisions in the future.

AJ

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 18:11

No probs. AJ.



I suppose that you wouldn't like to name the 2 Banks involved, in your case? JuliaMoons seems to want to keep her bank paying more than the norm. a secret too. I can quite understand anyone not wanting to say how much they have on deposit. That's personal, but I cannot understand the reticence to name Banks who are playing the interest rate game, assuming that you have all the facts correct.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
14/12/2011 18:48

scruff

I cannot see your e-mail address but if you want to e-mail me then I will be happy to tell you.

It is not something I want to discuss in detail on this board as it could quite easily backfire on me.

AJ

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
14/12/2011 19:37

AJ

Have just emailed you.

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
14/12/2011 20:02

Aj, What rate are you getting now ?

reyntj


Joined: 26/01/2011
Posts: 229

Message Posted:
15/12/2011 11:38

im getting 9.25 monthly at yakin dogul and 8.5 % at hsbc both on tl accounts i went to seker bank in iskele they offered me 10 % for a large deposit but i havent done it yet - i like the security of hsbc im nervous of everywhere else i should probably move my yakin dogul money to seker bank as they are a big turkish bank compared to yakin dogul who despite having survived the last crisis are only quite small and are linked to the university

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
17/12/2011 12:25

Re msg 31



Scruff, for your info, this campaign offer was made to me completely unsolicited as I was just doing the paperwork required to set up a standing order. I did point out that it would be nice to be given that rate on the amount I already have invested with them and received a wry smile in response.

juliamoons



Joined: 14/05/2009
Posts: 849

Message Posted:
17/12/2011 15:45

Scruff I am not keeping it a secret. There is only one AA rated bank on the island as far as I know. Do your homework.

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
17/12/2011 18:53

Credit where credits due

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
17/12/2011 18:56

Can you open an account with Creditwest from the UK and deposit funds online ?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
17/12/2011 19:17

re. msg. 31

Thanks for the additional posting J&J. I have now checked this out with Creditwest & seems this rate is only available for new money, for 6 mths & only for minimum 20,000 TL deposit. I did point out that it would be a better idea to advertise this to all on their website, because I am sure there are some who would go for it. It seems that all the banks are after additional funds at the year end. Garanti are currently & newly offering 10.5 on 21 to 32 day deposits for over 100,000 TL as well. I am sure these offers will not last.

As for your comment about it would be nice if they offered their existing customers higher rates, I couldn't agree with you more. I made the same comment to them just yesterday. I am now waiting to see what they will do, if anything, for an existing customer with a large deposit? They are clear what will happen if they don't.

artistabroad


Joined: 06/07/2009
Posts: 104

Message Posted:
17/12/2011 19:19

Message 49 - I was in the Karaoğlanoğlu branch during the week, and was told you can - at least open the account, don't know about transferring funds online - email selda.akcar@creditwestbank.com and I'm sure she'll give you the info.

minertor



Joined: 14/02/2009
Posts: 1238

Message Posted:
17/12/2011 19:23

When I came across in 2004 I was advised to bank with Turk Bankasi Ltd. I did and have regretted it ever since. I tried to make the best of a bad decision but have now come to the conclusion, as far as I am concerned that they are not a bank to be trusted. I believe that they lie to their depositors so that the can impose charges that no UK bank would condone. I no longer bank with them but am still trying to shed the shackles that they imposed.



T

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
17/12/2011 19:24

Nice one artist

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
17/12/2011 19:32

Msg 47. Actually JM you are keeping it a secret & I cannot for th elife of me understand why. I could understand you not wanting to give details about the amount you have on deposit. That is totally understandable. As for there only being one AA rated bank here. I think you will find that depends on who is doing the rating?

Only 1 bank comes to mind as advertising this, but I simply cannot believe that they are the 'only' bank here to be rated AA & therefore considered the safest??



Msg. 49. Yes, you can open an account with CW from the UK. However you cannot transfer funds directly online in the way that I think you mean. You have to transfer funds via a correspondent bank in Turkey & many UK. banks will not do transfers online. HSBC UK. do to HSBC Turkey (TRNC) but from HSBC to other banks, only via a correspondent Bank.

Moving money overseas online is not as straightforward as moving it within the UK.

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
17/12/2011 19:40

Understand what your saying scruff but when I bought my property I transfered monies from a UK bank ?



Is this not the same ?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
17/12/2011 20:01

Depends on your UK. bank & where you were transferring the money. When you move money from the UK. outside the eurozone it is transferred as a priority payment. It doesn't usually arrive the same day either.

I am not aware that any other Bank other than HSBC + a Premier account with them, will accept online payments as such. By this I mean 24/7. Priority payments are only available via HSBC whilst the currency markets are open up until 3.30pm UK. time.

It is impossible to move money directly to Creditwest from any UK. bank. It has to go via their correspondent bank in Turkey. This means the money will not arrive until the next day or even the day after, so the transfer isn't instant like it would be in the UK.

First Direct, part of HSBC group do not let you set up online transfers at all. Their priority payments to banks here are done via Telephone Banking.

I have no idea aboutany other UK. Banks but I think NWB transfers are only available to be organised by telephone too.

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
17/12/2011 21:52

Scruff I was asked if I wanted to deposit 100,000TL at 10% so I asumed that was the minimum!!

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
17/12/2011 21:58

Catalkoy branch said the minimum deposit for this campaign was 20,000 TL yesterday. Seems they are not sure branch to branch?

lozroz


Joined: 03/04/2011
Posts: 32

Message Posted:
17/12/2011 22:16

Scruff...

You seem to know loads about banking. Sorry to go off on a tangent but I've been told horror stories about doing internet banking here. I'm scared to go on to check my account in the UK. Is it as bad as they say?

j200mey


Joined: 06/02/2011
Posts: 81

Message Posted:
17/12/2011 22:38

your taking rubzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

lozroz


Joined: 03/04/2011
Posts: 32

Message Posted:
17/12/2011 22:43

I'm sorry I dont speak Gibberish. Would you be kind enough to translate what you just said into English?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
18/12/2011 01:11

lozroz

No probs with Internet banking here. Some of the local banks websites look a bit amateurish by UK. standards, but they work fine. Things have steadily improved since around 2006. The Turkish mainland banks have internet banking sites as good as the UK. banks.

Some of the horror stories may have been due to the customers getting the BIC & IBAN details incorrect when asking UK. banks to move money from the UK.

I have never had a problem of this kind in 10 years.

I know about banking because I worked for a UK. bank subsidiary most of my working life, but not in mainstream banking I would add.

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
18/12/2011 07:33

so if the banks are paying 10% on savings and getting in lots of cash from the ex pat community, who are they lending it to at a profit (say 15% ?).....



makes one wonder how they do it......

Turtle


Joined: 28/05/2007
Posts: 2669

Message Posted:
18/12/2011 15:21

Lending it to the TRNC govenment I would imagine !

lozroz


Joined: 03/04/2011
Posts: 32

Message Posted:
18/12/2011 19:38

Thanks for that Scruff. Had lunch with a friend today who said the same as you. prob wont use it for my account here, it was the uk one I was worried about.

Dont worry, wasn't looking to borrow from your bonus if you were.

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
19/12/2011 18:37

Scruff



I never joke about something as serious as money.



11% is available for 12 months deposit and the required amount deposited. As usual all accounts up to 20000 euros guaranteed. This with a bank which researches very well indeed.

CatalkoyJohn


Joined: 26/01/2009
Posts: 34

Message Posted:
19/12/2011 19:26

Breezeboy



11% Where?



John

...

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
19/12/2011 19:27

breezyboy

You did not in your original question add a qualifier re. 12 months deposit or larger amount deposited.

However I apologise to you if you thought I thought you were joking.