Kibkom North Cyprus Forum

I know that interest rates are dependent on the size of the investment but can forum members give us any ideas on what sort of rate a sum of around 100,000 pounds would attract theses days.

Many thanks

20% + on a TL account , interest paid monthly (Iktisat)

16% under 100k, 20% 100k and over Limassol bank

Depends on the bank you chose and your negotiating skills but for that amount you will get 21% at least with one of the some of the more popular banks

Moonrakers wrote:I know that interest rates are dependent on the size of the investment but can forum members give us any ideas on what sort of rate a sum of around 100,000 pounds would attract theses days.

Many thanks

Be VERY careful relying on the high interest rates on TL out here to generate income or as an investment. If you look at the two examples below it can blind you a bit.

Let’s say back in August 2017 you took your £100,000 and converted it into lire @ 4.55 and managed to get 25% interest on your 455,000. You plan to take out 7000 TL for spendies.

Over the year you would have picked up nearly 126,000 TL in interest.
So after the taxman has taken his bite and your 7,000 TL a month at the end of 12 months your 455,000 has grown to over 475,000.
Even after you have taken your 84,000 TL in spendies that’s a fantastic result.


Or plan B. You put the £100,000 under your mattress and every month took out enough sterling to buy your 7000 TL.
Over the same year with the fluctuating rate it would have cost you from £789 to £1518 in sterling to buy your 7000 TL or just over £15,000 for the year.
So you have just under £85,000 left under your mattress. If you had popped down to the bank back in mid-August last year and bought TL with your mattress money hey presto you have nearly 753,000 TL.
Bit more than 475,000.

August 2018 was the low point for the lire but if you run the same scenario for the last year from March 2018 you would’ve got 530,000 TL for your £100,000 and ended up with 569,000 after your 7000 TL a month spendies. Under the mattress you’d end up with 617,000 TL equivalent.

Inflation/spending power is a factor and of course the lire could strengthen and go to say 5 to the pound in which case your quids in.
But I’d be more than happy to have a very large bet with you it will weaken over the next year.

So be VERY VERY careful the lire is very volatile.

Better to get the highest interest rate you can in sterling.
Around 5% on that amount

Thanks one and all for your replies. It is a minefield that's for sure ! It would still be helpful if any forum members could tell us what they are getting on their investments.

Maybe some of the TRNC banks would like to get involved in the discussion and tell us what they have to offer ?

Be aware also the TRNC Central Bank guarantee per account is limited to Euro 25K (153,187.19 TL/£21,622.42 as at 11 March). You may wish to consider setting up multiple accounts to minimise the risk of a large loss as others living in the TRNC have done, although that might reduce the interest payable per account. As others have posted the TL rate is highly volatile. Good luck whatever option you select, but the TRNC Government tax of 10 per cent on any profit cannot be avoided.

Moonrakers wrote:
Maybe some of the TRNC banks would like to get involved in the discussion and tell us what they have to offer ?

IKEA do the Hidrasund mattress so maybe get them involved if you want to go with plan B.

The high rates look really tempting but id stick to the sterling rates . The only thing there is its only the local banks that are offering worthwhile rates.

My big concern with the local banks is some or them have trnc goverment debt and at the moment until erdogan signs the aid money im not sure the government even has the money to pay the interest.

If i was putting in up to the 25000 euro guaranteed limit id be asking the question about how much goverment debt the bank had .

What banks are offering 5%+ on gbp ? Tl is not a option for me

Try Capital Bank

Website only giving around 3%

You will have to into the banks and ask for their rates, The two I have dealt with have different rates on the websites to when you ask face to face.

Thanks sue
... I will check a few banks out after national holiday any bank I should avoid\persue,?

I was with creditwest but found that they gave varying rates on tl so enquired at Capital bank. Moved sterling and tl.