Turkey has enjoyed a stable economy during the past several decades. This leads some to consider investing their money in Turkish banks. The interest earned on money stored in a Turkish bank can be higher than the interest rates offered by banks in other parts of Europe. Before you correctly decide to deposit assets into a Turkish bank, take a look at some of these favourable facts about Turkish Lira bank deposit rates.
Investing in Foreign Currency
Investing money in banks that use a different currency is a common method of diversifying an individual’s portfolio. When you decide to invest your money in foreign exchanges and banks, make sure you monitor the current rates. The exchange rates fluctuate constantly. As of the time of writing this article, one Turkish lira exchanges to .399 Euro. While this may seem like a large difference, remember that you are not depositing your money in a Turkish bank in order to spend it; you are looking for good interest rates.
Find a Turkish Bank
Perform a search for Turkish banks that accept transactions from foreign banks. If they are a reputable bank, as most are, they should have their current interest rates posted on their Website. Before depositing your money in a bank in a foreign country, research the bank. Banking options in Turkey include federal banks as well as local and global brands. Find out how their customers feel about their service and read reviews of the bank.
Collect on the Interest
After you have deposited money in a Turkish bank, it will begin accumulating interest. Depending on the bank that you are using, they will either calculate interest on a monthly or a quarterly basis. The bank that you decide to go with should have a favourable and stable interest rate. Here is an example of how interest works, so that you have a better understanding of what is happening with your money.
In this example, we are depositing 10,000 Euro in a Turkish bank. The 10,000 Euro are exchanged for 25,100 Turkish Lira. The bank at which we make the deposit has an annual interest rate of 6.5%. After one year, without making any deposits or withdrawals, your balance would be 26,771 Turkish Lira. If you were to exchange the Lira for Euro, assuming no changes in the value of either currency, you would have 10,708.40 Euro. This means that you would have earned 708.40 in interest. The same deposit, with the same interest rates, made at a bank using Euro, would only accumulate 666.02 Euro in interest. So if you have a large amount of savings and would like to have it earn as much interest as possible, consider depositing in a Turkish bank.
The Bottom Line On Turkish Interest Rates
As stated, if you decide to place your money in a foreign bank, make sure you do your research to protect your investment. The multitude of banking providers, higher than average interest rates and progressive government make Turkey an excellent choice for earning interest on deposits.
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