High Interest Rates of Banks

turkcitizen


Joined: 14/01/2009
Posts: 35

Message Posted:
15/01/2009 08:32

Do you think that high interest rates given by some banks in TRNC in such an economy would be better than less interests from a safe bank??

I know where I would put my money..

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
15/01/2009 09:13

well you stick it where you want to my lad and we'll stick it where we want to......



Nick

Chessman


Joined: 13/05/2008
Posts: 486

Message Posted:
15/01/2009 09:14

Where my money is concerned, safety first every time!

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
15/01/2009 09:20

mess 3 - so what's safe then Chess ??



Lehman ? Woolworths ? Northern Rock ?





Nick

turkcitizen


Joined: 14/01/2009
Posts: 35

Message Posted:
15/01/2009 09:34

I agree safety is always first

Chessman


Joined: 13/05/2008
Posts: 486

Message Posted:
15/01/2009 09:43

msg4. I answered the question that had two choices therefore your post has no relevance for me.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
15/01/2009 09:48

I agree Geoff. Ensuring your money is safe is more important than anything else. In fact the Northern Rock is quite a safe place for your money at the moment given that the government is guaranteeing all investors money.

Chessman


Joined: 13/05/2008
Posts: 486

Message Posted:
15/01/2009 09:50

Very true, Bill.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
15/01/2009 11:03

With all investment there is a gamble and you must view the risk accordingly.



Any decent FA will tell you the level of risk be it high, medium and low and you receive returns accordingly.



Right now the risk from UK based banks is almost negligible with similar return on investment. Our own rates have dropped from 5.5% to around 1%, a sizeable drop in income. So have looked elsewhere and even at HSBC, Turkbank etc there are rates in excess of 15% on TL. By spreading into slightly higher levels of risk you can achieve over 20%.



We have no need of sterling as this is our home country but will still keep my pension in sterling, the currency it is paid in, in a safe sterling base.

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
15/01/2009 12:56

Safety is provided in TRNC by the government gurantees. See posting by Creditwestrep linking the government web on this subject. You can have as many accounts all guaranteed as you wish and 20 % interest. Current best in UK is 4.85% with an Indian bank ICICI. They are guaranteed to £50000 per person by UK government. If you dont beleive the guarantees will pay out you can go to a British bank at 4.5% and still pay 20% tax at source as opposed to 8% in TRNC.

Spread it about!

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
15/01/2009 16:16

With inflation running at 19% in NC (official government figures for pay rises), you need to be earning at least that to stand still.

reproman


Joined: 05/06/2008
Posts: 252

Message Posted:
15/01/2009 18:15

http://www.hurriyet.com.tr/english/finance/10713752.asp?scr=1



Anyone who has an interest in interest rates.



It pays well to keep one eye on the Economic/Political aspects regarding main land Turkey.



Repro...

turkcitizen


Joined: 14/01/2009
Posts: 35

Message Posted:
15/01/2009 19:56

thanks, very good idea actually, though our economy works differently than the Turkish one, but it helps sometimes. actually most private banks in n.cyprus are owned by families and have different investments in the market, so any difficulties they may face with their other investments affects directly their banking investments aswell.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
15/01/2009 21:28

hector msg 11



Exactly why leaving in sterling accounts in UK is a none starter now.



It is a bit Mr Mcawber, inflation 18% ish, interest here 20% no probs, interest 2% in UK, buyuk problem!!!

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
16/01/2009 16:55

Government inflation rates are usually tied to increases in certain items or services. When you have got your 20% you have the decision on where it is spent. Govt figures do not take into consideration sales, discounts or articles/services generally at a more competitive price. You could of course just leave it in the bank to make further interest if you dont need it at the time.

jamesfairclea


Joined: 09/06/2009
Posts: 2

Message Posted:
11/06/2009 20:46

Hi Turkcitizen,



I am tempted to invest in high interest TL deposit accounts. The interest rates on offer from NC banks give an exceptionally high yield (even factoring in currency fluctuations against £ and $) compared to deposit accounts in europe. Do you know how this is achieved and how it can be sustained?



I can only presume that the NC banks must be investing in high risk areas? If so do you now what type of investments are being made and is there likely to be a day of reckoning soon when those investments fail to yield enough return?



I would be grateful for any informed insights into this issue.

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
11/06/2009 20:52

As with all investments the higher the return then the bigger the risk and if you want take take the bigger risk option then only invest what you can afford to lose.

AJ

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
12/06/2009 17:17

Friends of mine were getting 30% interest in Turkey a few years ago, never had any problems in fact did rather well out of it.