Evolution of banking services in Turkey

In general I am quite happy with my bank, internet banking, notification of out or the ordinary movements, automated debits are easy. So essentially what you expect of a EU bank.

The development of TRY is not very encouraging and EUR or other currencies I prefer hold in Netherlands (or Hungary). Insurance for bankrupcy of bank I believe is only EUR 10 K or about. In the EU it is EUR 100 K and some other banks I trust very very much. The rating of banks in Turkey is not too high.

But as for services it is fine, I am a bit older, just online payments, direct payments, working cash machines and FX conversion online is more then enough for me

My social security checks are problem  because of Turkish banks are lazy .There is no better form of payment than U.S. Government checks in the world but all of the banks refused to cash my checks in$.Turkish banks are competing for Turkish retirees but American retirees do not get bonus payments so I still use U.S. bank accounts.Citybank, Compass BBVA which is better than Garanti BBVA. My credit union is being the best.ATM is limited with Turkish Lira .A few Euro or 💵  ATMs available.Use your own banks credit cards etc.

Yapi Kredi Bank is the only bank  to honor U.S. Government checks.

@LoneStarGuy

Here are my thoughts on the topic.  I suggest researching to see if my options may work for you:

I intend to move to Turkey in 2 years give or take a few months, and my plan is to establish an account with a Turkish bank when I get there.  When I start collecting SS, it will be direct deposited into my Fidelity account (I'll start collecting in a little less than two years).  There are two options for xferring the money into Turkey:                                                                                                                                                                                                                 

1) Fidelity offers free money wiring to any international bank and the recieving Turkish bank will convert USD to TL 

2) Use a service called Remitly to send the money to my Turkish bank for a small fee but it provides an exceptional exchange rate.                                                                                                                                                                                         

I'll elect the option offering better cost and convenience.  Of course, those are just plans, I may find barriers to my planned options or discover better options once I get there.                                                                                       

To wire from Fidelity requires first establishing a link to your international bank using the international banking account number (IBAN).  Once established, the xfer can be executed directly from your account with a click of a button.  Remitly is also similar in that your source bank and your receiving banks have to be setup and then it's a simple matter of making the xfer request from your Remitly account.  BTW, I agree a credit union is the best but the free money wiring service Fidelity offers can't be beat.  Fidelity is my broker.

Good luck

I am shocked (being EU citizen) that pension or social security can not be dealt with by automated transfer (the Turkish  taxes (for EUR anyhow) of 0.15% I would say I do not care).

Does the US really not use the normal bank transfers (difficult to understand)

I personally have no income whatsoever, but within the EU they will transfer to account indicated.

Some problems though, and how to arrange, in the EU many things are aligned, some thing not.

Right now for my pensions (Netherlands, UK (doubtfully, but that is another matter), Luxembourg and Hungary, as per rules I have to go to Hungary (for collecting my European Pensions), I do not speak Hungarian (at all) so I suppose I have to hire a company to deal with the authortities. Interesting, but only a few years time. Paying by check is really ancient I think. Taxes and getting pensions arranged for me would be the focus.

By the way I do not want to receive interest, the hassle of tax declaration is too much. I try to have no income whatsoever (not in Turkey (I think they are happy), not in Netherlands or in Hungary).

I might change my mind, but lets see.

Things are changing quickly everywhere

Another problem for Americans in Turkey is investment accounts.So do not close Fidelity,Charles Schwab or Robinhood brokerage accounts which are free.Isbank& Akbank is charging $15 per transaction .Same service is free in the U.S. Be aware of Akbank&Isbank sharks.Citibank has branches.Opened my account in Chicago's North Michigan Ave  branch is using in Turkiye.(Country changed name) without problems.Kuveyt Turk bank as a local bank has outstanding customer service.Islamic bank but they are very friendly.Be aware of language barriers at Central Anatolia cities .German&English mostly spoken at Touristy Town bank branches .

@LoneStarGuy

I am a simple guy, just buy a property here, create a TRY/EUR and USD bank account and make sure you have enough cassh to live for 2 years or so (not more (as insurance for balances are limited). Just keep your investment accounts or whatever in Europe or the US.

Taxes of course are another issue (I would imagine a different thread)

Not too difficult and no need for regular transfer, as soon as you start to speak about investment accounts, it really implies you have enough assets, no need to worry I would think (also NOT for US Citizens)

@Gino_C

Good to create as well USD or EUR account at your local Turkish bank, easy and you can choose when you want to convert (and often at good (relatively) prices).

Easy does it.

BTW I think I have to disagree with negative comments of others on Garanti BBVA (just my view), OK rating might not be perfect, but service is fine and infrastucture is not too bad.

@Gino_C

What will Fidelity FX rate apply? Please have a look at recent post. Comparing is good.

One thing for sure Turkey wants (also promoted by governement) people to buy TRY, I do not say local banks get a bonus (not my business), but look at FX rates offered before engage eg Fidelity, having a local Turkish USD account might be an option as well.

@Cheryl Good initiative

@cdw057

Fidelity does not convert the money, they offer the service for wiring the money at no fee.  I was told by Fidelity that the conversion to TL will be under the authority of the destination bank in Turkiye.  I'm uncertain if the destination bank can hold the funds as $ until I withdraw.  Which is why I will seek a bank in Turkiye which offers gainful conversion rates.  Regardless, it's a lucrative option. 

As for Remitly, I have used it for an American friend living in Turkiye and it works flawlessly.   To prove my point,  I just logged into Remitly and the current exchange rate is $1 = 27.00 TL and the fee they charge is $3.49.  Very reasonable.

In looking further on this subject, I found pertinent websites which may be of help:                                           

https://investguiding-com.ngontinh24.co … foreigners

https://immigrantinvest.com/blog/open-b … turkey-en/

https://www.exiap.com/guides/how-to-ope …  

The last link offers:

"providers like Wise and Revolut can help. You can open an account online or in the provider’s app with your US proof of address, and start to hold, spend, send and exchange dozens of currencies including TRY.

You’ll also get a linked debit card for easy spending and withdrawals, and in some cases, local TRY account details you can use to get paid in lira with no fee.”

Also CDW057, I hadn't thought about the fact that interest paid by the bank possibility becomes income subject to income tax.  I agree, I'd rather not mess with or minimize any matters dealing with the Turkish government.

Good topic Sheryl!