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 Post subject: Keep money in US dollars or TL?
PostPosted: Mon Aug 04, 2014 8:01 pm 
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Joined: Sat Jan 28, 2012 3:30 pm
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Getting ready to retire to Turkey. My pension is in US dollars. Did not think of it but some friends were asking if I was going to keep my money in a Turkish bank as Lira or Dollars. Is there a difference?


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Tue Aug 05, 2014 8:00 am 
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Joined: Sun Jul 15, 2007 3:54 am
Posts: 50
keeping money in US dollars earns little or no interest. The current exchange rate is 2.14 lira for each dollar. The current interest rate for funds in turkish lira is 9.15 % per annum. Each month either the banks or the government borrow money from institutions or the public in multiples of 1000 lira for a set number of days up to 1 year+ or- 60 days.
10,000 lira invested for 1 year will earn 915 lira less 10% tax charge which is deducted from all accts before the proceeds are released.
Many many foreign investors as well as ex-pats and ordinary turkish citizens put their funds in this remarkably safe method of saving.


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Tue Aug 05, 2014 9:12 pm 
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Joined: Sat Jan 28, 2012 3:30 pm
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Is this a savings account? Will I have access to the money (lira) or do I have to leave it in for a whole year?


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Wed Aug 06, 2014 1:41 am 
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Joined: Sun Jul 15, 2007 3:54 am
Posts: 50
these are time deposits similar to US certificates of deposit, treasury bills or treasury bonds. Complete access at anytime to the funds prior to maturity date. Of course if u need the money b4 the maturity date you will lose some interest. What we do is spread our funds out with many expiration dates so we can take advantage of interest rate movements.

We have dollar accounts and lira ones and move the money accordingly between the 2.

As I have stated b4 I am here for over 11 years and have helped with vital info to individuals and families who choose to live here.

If you have skype I am TurUncleSam there and we can chat free of charge and I may be able to give you further help. Sent contact request. If you dont have skype you can download for free.
all the best

Matt


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Thu Aug 07, 2014 6:05 am 
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Joined: Mon Feb 27, 2012 7:40 pm
Posts: 72
Location: Istanbul
Ryan
You can deposit your money in a saving account in any currency you wish with a period of 1 month or 34 days or more. You can withdraw your money either on the set date w/o losing interest, but if you withdraw prior to the set date you lose interest for that last period only. As it has been said the interest rate on the Turkish lira is around 8% now but it is declining. as for the Dollar, the interest rate is around 1%. In my opinion it is best to keep some money in Turkish lira account and some in dollar account so one can compensate for any fluctuation in the other.


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Fri Aug 08, 2014 8:30 pm 
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Joined: Fri Aug 08, 2014 8:23 pm
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ryan wrote:
Is this a savings account? Will I have access to the money (lira) or do I have to leave it in for a whole year?


Some new banking systems have good solutions for this case that you can access whenever you want to the money without any loss, so I advice enpara dot com where your money can earn everyday, it is called daily-saving(günlükbirikim)


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Sat Aug 09, 2014 2:25 am 
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Joined: Sun Jul 15, 2007 3:54 am
Posts: 50
hi all

Replying to newblue's post.

Unfortunately this is not completely correct. Yes you can have a ''savings acct'' that doesnt charge you when you withdraw funds but you earn very little interest on your funds. You can have this type of acct at any turkish bank.

What we do is use internet banking and pay our monthly bills and purchase any items with our credit card from our main acct. On the 24th of the month the bank taking all the charges for that month and deducts the funds from that acct. Until that time we are not charged any fees or interest on our purchases or cash withdrawals. We pay the entire amount due in full and so starts a new cycle of purchases and charges.

Do not be lulled into thinking that most of the banks do not charge fees. They will charge you fees for withdrawals, your credit card, money transfers, money conversions etc.

We have found that işbank has the lowest fees of all the banks and the fastest service. It is also known as the safest and oldest bank here in turkey. It doesnt have as many branches or ATMs as others but its online services are better.

If you can open an acct with CITIBANK in the states and then open one here with them you can save a lot of money in foreign money transfer fees. There is no other bank that gives you this no fee foreign transfer rate.
Even if you dont use citibank you should open an acct in the states anyway just for that purpose.

We just invested on august 7th monies that will earn the average of 4 quarterly interest rates. Currently the interest rate is 9.46% annually + the bank gives an extra .40%. These funds are government securities. All of the banks advertise these fund for investment we choose to do it with işbank. So for every 1000 lira invested at the end of the year we will receive 1098 less the 10% tax on the interest earned (9.8 lira) so our net will be 1088 (approx). The banks here do not compound interest rates. It is simple annual interest. The 10% tax is automatically deducted from the payment to you at the end of the investment period before you receive the funds.

Do not let your US dollars sit idly in an account if you dont need them. there are investment plans that u can get at approx the same interest for a duration of 1 month as well.
The turkish lira is not strong against the US dollar or the euro and the government is spending more than it takes in so it offers these investments to pay for its services to the nation.

Do not be fooled in thinking that inflation here is low. The energy costs are among the highest in the world for the consumer. Buying imported goods is very expensive. On the other hand labor services, basic foods are inexpensive. Depending on where u shop and/or where you live the differences in prices can be be 100% for most grocery items.

Right now purchasing a home is very expensive as there is a real estate boom in some parts of turkey. Rent for a while to get the ''lay of the land'' then find the best area and deal.

ta ta for now


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Sat Aug 09, 2014 9:20 am 
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Hi matt,

Thank you for the details that can help you even to me maybe.. if it is better then I should consider about moving..

Have you ever used the enpara com ? I have been using this system for 1 year and there is no any fees that you wrote above, and rates are higher than the other annonced rates on the internet.

So I am so happy with this system, but after your post I have examined the citibank internet page but could not see the individual rates there?

You can see the enpara com rates here: http://www.finansbank.enpara.com/mevduat-oranlari/mevduat-faiz-orani.aspx

How can I see the rates of citibank for personal bankink

Thanks


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 Post subject: Re: Keep money in US dollars or TL?
PostPosted: Sat Aug 09, 2014 3:58 pm 
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Joined: Sun Jul 15, 2007 3:54 am
Posts: 50
hi again

The link you gave is the finansbank one of the stronger banks here in turkey. The interest rates are similar to Işbank but with Işbank's bonus their rate is less.
Where the banks get you is the fees for the smaller services like paying bills through the bank, conversion fees and rates, credit card yearly fees etc. After 11 years here we have heard many many stories about the bank fees from friends and relatives.

CITIBANKs consumer business was recently taken over by Denizbank which uses their name here in Turkey.
I offer the opening an acct in CITI in the states only for the transfer of US dollars to turkey.
the link is
http://www.citibank.com.tr/gcb/english/citibank-everywhere/About.htm?eOfferCode=TREHCEAWAL

I strongly recommend Işbank because of their consistent reliability and the quality of their service personnel from their tellers to management. They also have funds for long term investment catering to every need from hi to low risk. All these funds are immediately available for withdrawal 24/7.

Hope this additional info can help

matt


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