lee08

Still yet to invest my money, i do know the risks,but what with the UK rates being bad i do think its worth it, any thoughts anyone?
Lee

Suscott

Halkbank have offered us 18.5% for 100,000 ytl on a 32 days notice account. Have tried to get the rate increased but no luck so far!

BernardMatthews

"100,000 ytl "

and the Turkisk financial scheme covers what value on deposits ?
Is it 50,000 ytl ?

It's a personal thing ,but if the rate on 50,000 ytl is perhaps only slightly less why would you want the extra risk ?


I recall coming back from France last year and reading about a dozy retired hotelier chap who had about a £1 million on deposit with N Rock. Panicing that he might lose most of it when it was only covered on a small part of that value.
Personally I prefer to be able to sleep at night

jcrian

Imagine trying to open 28 different bank accounts to cover that sort of sum!

Also you would have to do a lot of research as some banks own more than one bank and you would only be covered for the first £35K if that was the case.
The government aren't going to let any of the big UK banks/building societies 'go under' because of the devastation it would cause to the UK economy.

Turned out Northern Rock was the safest place to leave your money after all.

BernardMatthews

JC,
I'm not suggesting opening 28 different banks accounts. That is not necessary and overkill. However ,neither do you have to be financially naive enough to concentrate your entire liquid worth as that chap I referred to had clearly done.
FWIIW I actually do hold liquidity across quite a few institutions just to ensure I am not taking more risk than the EXTRA REWARD merits and with the internet it requires very little work to ascertain ownership etc and monitor those accounts. Years ago you would have been right ,but today is a different issue.

UK institutions are an hodge podge of subsidiaries to say the least ,but it does look as though that will be addressed going forward as it should be with them being liable to contribute for each of their subs. Look at HBOS for a start. Lord if you didn't know what they actually owned you could be invested with them many times over.

As for your comment re Northern Rock I'm sure it's meant in the right way ,but logically we have to accept this is simply hindsight and again personally I'd rather use foresight in situations like that. Anyone touching the markets periodically could have seen that N Rock were no place to put funds that were not completely covered by the FSCS. that si not to say you could have guessed at their meltdown ,but you could have said they were the major institution at risk and followed that up quickly with their cohorts BB and A & L. Allocate accordingly is all I say.

On a probability basis I'd say you are right the UK govt will not allow any lender of size to go under ,but the lesser probability outcome would stand on the basis that an event might arise where the UK govt actually does not have the ability to intervene. Not a high probability ,but looking at our National books it's a possibility. If I wind the clock back a couple of decades I doubt if you would have expected default in countries like Sweden , or Norway would you? Yet it happened. So ,what is so sacrosanct about the UK ?
One of the anomalies of current times may turn out to be that countries especially emerging/developing one's) are actually mispriced for risk of default vis a vis the UK (and others) simply because their National accounts are in a lot better shape than ours this time around.

LOL...what all of that has to do with interest rates in Turkey ,apologies to the thread for the disruption.

missmo

Sorry for being naive but - What risks do you mean other than the bank going under I was under the impression that Turkish Banks are as safe as our UK banks?

mo

Mark and Wendy

It seems as if everyone gets different interest rates. We've got £10,000 in Garanti for 6 months and we are getting 16.25!!!