Christmas is a time when we seem to be dipping into our savings on a regular basis, whether it’s to buy christmas presents, fork out for entertaining and restaurant meals or pay off that huge electricity and gas bill that’s just fallen through the letterbox (at the worst possible time, of course).
So, here at Oceanwide Properties we believe it makes sense to check that our savings are in safe hands. Many UK citizens and other foreign nations who have bought a property in Turkey in recent years and who are spending a good proportion of their time in their Turkey property, rather than renting it out, have – of course – used the banks in Turkey to deposit their savings. Interest rates in Turkey are better than in the UK and many other countries so it’s understandable. So too is the need to have cash nearby and where it’s possible to get ready access to it in a financial emergency.
Savings Deposit Insurance Fund of Turkey (SDIF)
You’ll be relieved to hear that there is a deposit protection scheme in Turkey. It’s actually been around for quite some time – more than 80 years to be precise. The scheme (which also goes by the name TMSF) means that private banks are obliged to hold – in cash – certain sums to guarantee depositors savings. The clients’ deposits can be in Turkish Lira, foreign currency, equity funds or accounts dealing with, for example, gold or other valuable metals. However it’s important to realise that the scheme covers only personal accounts i.e. business accounts or offshore savings are not covered by it. Neither are deposits with banks and other financial institutions who offer extremely high interest rates.
What if The Worst Happens and My Bank Goes Under?
If your bank collapses then the scheme will pay out a maximum of 100,000 Turkish Lira per person per deposit (although this could be higher if the TMSF is involved). It’s a good idea too, when it comes to banking your savings in future, to sign up with several banks – rather than using just the one financial institution (‘spread the load’ in other words). This way you can potentially ensure that you never have more than the maximum payout of 100,000 Turkish Lira in any one bank account.
We can obviously advise you on savings when you come to buy a property in Turkey as this will involve quite a bit of money transference between the seller and yourself. It’s also good to have an organised banking system if you plan to rent out your property on a regular basis. Regardless of whether you are looking for a property to live in, or rent out, then please do take a look through some of the current properties in our portfolio. You’ll find them all on our website OceanwideProperties.co.uk or come in to our offices in Turkey and London and take a leaf through our brochures at your leisure.