looroll

Hi there

Probably a silly question.
I've trawled through the forum but cant find the answer although its probably there somewhere!

Say for instance you put £100k in one of the time deposit accounts for 12 months - is the interest paid after the 12 months or monthly?

You can see what Im getting at here - would I have to fund myself for a year until the interest accumulated?

I have a sterling and lira account at Garanti.

Thanks
(dont shout at me please)

jcrian

Some accounts are paid monthly and some annually.You will have to check with the bank to see what sort of account you have.

looroll

At the moment I just have a current account at Garanti.
I assume I would have to open one of the special time deposit accounts.
Then (I also assume) I can have the interest transferred to the current account for everyday living expenses.
When I go on 7th June I'll pop into Garanti and get all the information.

julia

you can have monthly or annual maturity dates on a time deposit account,the rates are usually the same, and you can have the interest transferred into your current account on maturity date, you cannot access your money on any other day.

Montemaranne

Hi Looroll,

Julia has explained it well. Just want to add that Garanti give higher interest rates if you have more than 100000 ytl in one single account. They also give better rates for two months than for one. The best thing is to go in and discuss it with them as the actual branch rates are generally higher than the internet ones. You don't say where you live in Turkey. We are in Yalikavak and I can recommend both the Garanti branch there as well as the main branch in Bodrum.

looroll

Thanks for your help everyone.

The £100k would be sterling.

I will be living in Turgutreis and my account is at the Marina branch.

Ideally I would like to keep the capital in the sterling account and transfer the interest to the lira current account on a monthly basis.

Harem

Ah, you won't get such a good interest rate if you keep it in sterling. The high interest rates are only paid on lira accounts. Also, you would not be able to have the interest paid into a lira current account if the interest account was a sterling account.

looroll

Ooo didnt realise that!
I thought the money would be safer in sterling - I really dont mind if its in a sterling or lira account as long as its safe (the capital).
Also, I read a thread on here regarding how people lived in Turkey and there were confusing replies about the tax rate you pay on interest, one person said 30% then someone else said it was 15% - does anyone know what it really is?
Also is it paid at source or billed?

Mark and Wendy

I think if you have a time deposit account, say you put your money in for 6 months, the interest rate that you accept at the time of opening is what you get for 6 months. It is payable once the 6 months are up. If you open a high interest account you get the interest once a month but only on the day the interest is put into your account. If you go at any other time you lose a months interest.