Which currency should I use?
You can make your payment in Sterling, US Dollars, Euro or Lira, or other currencies bought or sold by the Central Bank of Turkey.
Some purchasers of Turkish property prefer setting all price terms in Lira, in order to avoid tax evasion complications due to conversion errors.
Which bank account is best?
YTL-denominated and FX-denominated accounts: You can open an account with any currency convertible in Turkey, including Sterling, Lira or Euros.
Savings (depository) accounts: If you open a savings account, at the end of the designated term you will earn interest on the money you deposited.
If you withdraw your money before the end of the designated term, you won receive any interest, just the principal. Many banks in Turkey automatically set another savings term if the account holder does not withdraw their money at the end of the term. Instead, banks will consider this the new principal and it will be reinvested for another term under the current interest rates.
Saving terms begin from a one-month duration and can be greater than a year. These accounts can be in any convertible currency.
Since 2005, the average nominated interest rate for Turkish Lira-denominated savings accounts is around 16 per cent, but foreign currency accounts stay closer to the rates in the country where the currency is used.
Current (depository) accounts: These are Turkeys day-to-day accounts. You can deposit money and withdraw it at any time. Very little interest is earned on current accounts. Current accounts can be either Turkish Lira-denominated or in any convertible currency.
Most Turkish banks provide excellent internet banking services, including English language websites. Ask your bank how you can sign up for this.
Please call us if you are confused or have any questions about bank accounts in Turkey.
What other investment tools do Turkish banks provide?
Turkish banks have many savings instruments including:
- Trading of Treasury bills or bonds
- Mutual funds and entities
- Trading in foreign currency
Please contact us if you have any questions about these funds.
How to open a Turkish bank account
Its easy to open a Turkish bank account in your own name. You just need a tax number from the local tax office, and submit this with a copy of your passport to your prospective bank branch.
A joint account, which two or more people have access to, can also be opened easily in Turkey. Make sure the other party has the right to withdraw money from this account without your consent.
Strict Turkish banking regulations mean that no one has the right to withdraw money from your account, and no one has the right to know your bank details (with the exception of the Courts of Turkey if legal action is taken) unless:
- You provide an agent with a legal power of attorney, or
- You hold a joint account where the joint party has the right to withdraw money
Opening a Turkish bank account from overseas
If you wish to open a Turkish bank account from your home country, you have two options:
1. Assign an agent in Turkey to carry out the procedure for you via a power of attorney, or
2. Contact a Turkish bank near you. These will be found only in bigger cities. Contact us to see if theres a Turkish bank near you.
Using your chequebook in Turkey
Most foreign nationals will be able to use their chequebooks in Turkey. However, you may need to pay a commission fee.