How is Interest Paid at bank in TRNC

All to do with money - Banks, Insurance, Savings, Exchange Rates...

Moderators: Soner, Dragon, PoshinDevon

Post Reply
gemini39
Kibkommer
Kibkommer
Posts: 157
Joined: Wed 04 Apr 2012 8:17 am

How is Interest Paid at bank in TRNC

  • Quote
  •   Message 1 of 19 in Discussion

Post by gemini39 »

If you get 10% on your T/Lira, and they take 20% on the interest gained.

So on say 50000T/L =5000 less 20% = 4000Nett

Question do they pay this monthly or only at the end of year one

Can anyone confirm please

zarafet
Kibkommer
Kibkommer
Posts: 141
Joined: Tue 01 May 2012 10:32 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 2 of 19 in Discussion

Post by zarafet »

Depends on what account you have. You can have various timed accounts from 1 month to year or more and they pay different rates of interest depending. If you have a monthly savings account you will be paid monthly, 3 monthly paid 3 monthly etc. Hope that helps.

gemini39
Kibkommer
Kibkommer
Posts: 157
Joined: Wed 04 Apr 2012 8:17 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 3 of 19 in Discussion

Post by gemini39 »

Thanks for that Zarafet

carey
Kibkommer
Kibkommer
Posts: 6
Joined: Fri 11 May 2012 11:35 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 4 of 19 in Discussion

Post by carey »

Dear Gemini,
The interest rate does depend on how much you have invested and how long you wish to invest for. Interest can also be drawn monthly or rolled over with the capital amount. It is worth checking out a few banks, as I have found my bank became more competitve when they realised I was shopping around...
Hope this helps. Carey

gemini39
Kibkommer
Kibkommer
Posts: 157
Joined: Wed 04 Apr 2012 8:17 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 5 of 19 in Discussion

Post by gemini39 »

Hi Carey

Good helpful info.

So far have shopped around and got offered 10% on £50K

Thanks

zarafet
Kibkommer
Kibkommer
Posts: 141
Joined: Tue 01 May 2012 10:32 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 6 of 19 in Discussion

Post by zarafet »

Make sure you put that amount over several accounts. There is a 20,000 euro per account safety (or so they say), seems you can have as many accounts as you like within the same bank, but they only guarantee 20,000 euros per account.

gemini39
Kibkommer
Kibkommer
Posts: 157
Joined: Wed 04 Apr 2012 8:17 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 7 of 19 in Discussion

Post by gemini39 »

Hi Zarafet

Thanks, couldn't remember the exact amount , but having several accounts in same bank is one solution

Deniz1
Kibkommer
Kibkommer
Posts: 5119
Joined: Sat 07 Apr 2012 11:22 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 8 of 19 in Discussion

Post by Deniz1 »

Dont forget to allow for the tax they deduct at source.

gemini39
Kibkommer
Kibkommer
Posts: 157
Joined: Wed 04 Apr 2012 8:17 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 9 of 19 in Discussion

Post by gemini39 »

Deniz 1
Already mentioned in my opening post

annanirvanna
Kibkommer
Kibkommer
Posts: 233
Joined: Wed 12 Sep 2012 6:05 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 10 of 19 in Discussion

Post by annanirvanna »

Hi new member just fact finding as seriously considering relocating to TRNC.

Can some-one give me information on this tax deduction at source on interest accrued on bank savings. Is there a starting point tax starts getting deducted or do they take the 20% from even small amounts of interest. If I do relocate I will wish deposit into a savings plan to boost my monthly income - so if they're going to deduct 20% I will bargain all the harder for a better % rate!!

User avatar
Keithcaley
Verified Member
Verified Member
Posts: 8078
Joined: Sat 21 Apr 2012 6:00 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 11 of 19 in Discussion

Post by Keithcaley »

I can only speak about my own bank - Creditwest.

The tax is only 10%, NOT 20%

It appears to be deducted from all interest earned, regardless of how much is in the account, or how much interest is paid.

annanirvanna
Kibkommer
Kibkommer
Posts: 233
Joined: Wed 12 Sep 2012 6:05 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 12 of 19 in Discussion

Post by annanirvanna »

Thanks Keithcaley Phew!! 10% Ok that's not too bad

User avatar
Philoz
Kibkommer
Kibkommer
Posts: 1168
Joined: Sat 14 Jul 2012 10:33 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 13 of 19 in Discussion

Post by Philoz »

Yes,Keith Is correct-the tax is deducted at source normally when your investment matures,it is called 'stopaj' on your statement and is deducted at the rate of 10% .
e.g. If you had TL10000 invested for a year fixed @ 10%-the gross interest is TL1000, less 10% Tax= TL100= Nett amount TL900.
That is my understanding anyway.

annanirvanna
Kibkommer
Kibkommer
Posts: 233
Joined: Wed 12 Sep 2012 6:05 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 14 of 19 in Discussion

Post by annanirvanna »

Cheers Philoz for confirming & also for the breakdown - at the end of the day the % is loads better that the UK.

Now have to do some thinking:- whether to leave savings in my Egyptian a/c @ 13.5%, less money transfer costs to transfer from Egypt to TRNC, against the best deal I could get there for putting savings into a/c in TRNC less 10% Hmmm . Wishing you all well

wanderer
Kibkommer
Kibkommer
Posts: 1648
Joined: Tue 03 Apr 2012 7:49 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 15 of 19 in Discussion

Post by wanderer »

How it works
month 1 10,000ytl interest 83.33ytl tax 8.33 ytl net 75 ytl
month 2 10,075 ytl interest 83.95ytl tax 8.40 ytl net 75.55 ytl
month 3 10,075.55 ytl and so on

wanderer
Kibkommer
Kibkommer
Posts: 1648
Joined: Tue 03 Apr 2012 7:49 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 16 of 19 in Discussion

Post by wanderer »

Don't forget the capital appreciation or depreciation as the exchange rate moves
The lira has depreciated over the last two years against sterling 2.20 ytl now 2.90 ytl

annanirvanna
Kibkommer
Kibkommer
Posts: 233
Joined: Wed 12 Sep 2012 6:05 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 17 of 19 in Discussion

Post by annanirvanna »

Thank you Wanderer. Lots to think about that's for sure . The only way forward to get a real feel of TRNC is to do a 'recce' trip & once there I can check banks, property, location etc.

annanirvanna
Kibkommer
Kibkommer
Posts: 233
Joined: Wed 12 Sep 2012 6:05 pm

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 18 of 19 in Discussion

Post by annanirvanna »

Thank you Wanderer. Lots to think about that's for sure . The only way forward to get a real feel of TRNC is to do a 'recce' trip & once there I can check banks, property, location etc.

chelwood
Kibkommer
Kibkommer
Posts: 84
Joined: Wed 09 May 2012 8:14 am

Re: How is Interest Paid at bank in TRNC

  • Quote
  •   Message 19 of 19 in Discussion

Post by chelwood »

gross less 10% divided by number of days in month , remember some banks when topping up your account if more than two days past the monthly date of the original deposit will not pay any intrestest till the end of the second month , shop around and batter hard , its your money and you can still get over 10% dependant upon the amount you deposit .

merry xmas and good health to all for 2012

Post Reply

Return to “FINANCE - Kibkom North Cyprus Forum”