Gazgaskell

Hi, tax on interest on Turkisk lira savings/investment accounts is currently 15% of gross interest, so earn £100 interest & pay £15, & due to dual taxation agreements between UK & Turkey, this should be your only tax liabiity!

sparrow

Gazgaskell,

Who can guarantee the interest rate in Turkey will remain that high ??
Unless you put your money in long term bonds (and then you have no possibility of a weekly withdraw) you cannot be sure ot that

Well, the same applies to UK interest of course
PS : no way we could get 5,25 percent in Belgium these days either !

jcrian

Here's a list of some of the best savings rate available in the UK now.

saoirse

That one year 6.7 looks tasty. Sign up the old In Rev forms re non residency and get the full 6.7 gross

Mr Turkey

Just a couple of issues to think about -

Fixed term accounts prevent weekly withdawls so no draw down.

Turkish Currency can be extremely volitile. 90% inflation isnt that long ago, the currency devalued substantially in the recent past and the inflation rate for this year was circa 10%. Present inflation rates are the best for 37 years, so, historically, it has a poor record for inflation.

There is a reason that Turkish Banks pay high interest - inflation and risk are large parts of that. This is why large corporations dont simply put all their money into a Turkish bank account !! It's just not that simple. If it where, it would be a nation of multi millionaires.

A common thread of financial advice is NOT to put all your earnings into Lira but to spread your bets as it where - have some in GBP, some in Lira. The economy in Turkey is seen as improving however, and inflation is presently decreasing.

MR TURKEY

bodrumsjh

This may be getting off of the thread a bit, but I don't think Gazgaskell's statement is right.

Dual taxation agreements do not mean that if you are UK tax resident then you only pay the lower Turkish rate.

They do mean that you will not have to pay full tax in both countries. The effect of this is that you have to pay Turkish tax on interest (15% (if that's what it is)) and then the rest of what you would have had to pay in the UK.

Therfore 15% to the Turkish taxman and 7% to UK taxman (Your 22% UK duty minus the 15% you have already paid in Turkey).

missmo

Thank you very much for the chart saved us a lot of work

mo