Interest, in short, means profit. It is the fee for the use of the money received from the bank or similar money. The rate of this fee varies depending on certain issues. Especially the situation of the economy in this regard is extremely important. Because, the interest rates are directly related to the economy. The decisions taken by the central banks and the policies they have implemented are decisive.

The interest earned on the interest of banks and similar places from the asset offered to the citizen to bring money; The percentage of earnings can also be called interest rate. We can make the definition in different ways. For example; we can also say that the loan amount of the loan . What is important is how the interest rates will change. In particular, investors involved in financial markets are affected. Because falling or rising rates altogether changes the course of investments. Therefore, you should be aware of the interest rates that are among the economic data and which directly change the course of the markets. You need to know how the changes are interpreted. Thus, you can consciously direct your investments. By selecting the instruments you can earn, you can evaluate your savings.

What is interest?

The definition of interest differs according to the area in which it is used. When the concept of interest in terms of economic terms is taken into consideration, it means income obtained as a result of sales resulting from debt agreement; at the legal level, the definition is legal. At the same time, interest refers to earnings from capital used as input for production purposes. This definition is more suitable for the system of capitalism . Because the capital among the production factors is used in a certain period. In return, the usage fee is paid with interest.

Interest was first used by the Sumerians in 300 BC . So it has about 5000 years of history. Products given as debt are seeds. In return for the debt 20% more seeds, the creditor is taken back by. As you can see, it complies with the above definitions. There is not only money, but also the rate of return on the manufactured goods. This is called interest. Of course, according to beliefs, there are different interpretations of interest. According to Islam, interest is haram; double standards are applied in other religions. Thus, neither interest nor grant is not considered haram.

What is the Interest Rate?

The interest rate, both nominal and real, is expressed in two different ways. The rates disclosed by institutions such as banks or derivatives are called nominal interest rates . Inflation is regulated by a specific intervention and the ones called real interest rate . The nominal rate includes the interest rate by subtracting the inflation rate. Interest rates are annual unless otherwise stated. The time zone is calculated according to the percentage of the amount of the borrowed money.

Varieties of interest rates are quite high. Accordingly, the amounts to be paid vary. Credit type, duration, buyer's features, conditions of the institution giving the loan and so on. all of the situations make a difference . Since the rates vary between banks, consumers prefer the most suitable ones among the alternatives. In this context, I would like to list some of the loans that banks offer and which are often life-saving; mortgage loan, personal consumer loans , SME loans, car loan , mortgage loans, discount (surrender) credit, spot creditsand a rotary credit. You can use many options to choose from to meet your needs. What you need to be aware of here is that interest rates should be low. Thus, in contrast to high interest rates, you pay less for low rates.

How to determine the interest rate?

Interest rates are determined by the central banks of countries. In this context, the primary issue is inflation. Because inflation is directly related to the economy. Generally, countries determine interest rates in such a way that they correspond to a 2% inflation rate. However, the inflation rate is high in our country. Therefore, a 2% ratio is targeted. In this context, other factors that provide price stability are also considered. The reason for this is that equality of goods and money markets can be established.

You know that central banks have to establish a monetary policy that provides price stability. For this, banks can lend money or borrow money. In terms of establishing monetary policies, bond or deposit rates are followed. Accordingly, the situation of inflation is determined. Even ifinflation is high and the central bank implements policies to lower interest ratesinterest rates in the market are not affected. It continues in the high course. In this case, while investments and production declines, unemployment rates increase. Therefore, the financial structure collapses. To prevent the crisis from occurring, the central bank implements a regulatory policy. With the decrease in inflation, the confidence in the economy will increase and the amount of investments and production increases. The unemployment rate decreases. Thus, the transition from the shrinking economy to an expanding economy.

In order to determine the factors that need to be taken into account for the determination of inflation; factors affecting the economy such as production and consumption amount, wages, employment, unit costs of labor, economic data, public prices, monetary indicators, changes in exchange rates, balance of payments, changes in financial markets, credit size. As a result of these factors, inflation in the country is determined. Interest rates are then decided by making studies for expansionary policy. Thus, the rates described are shared with the public in accordance with the principle of transparency and openness. Accordingly, the consumer takes his own measure.

Why do interest rates change?

Interest rates change as a result of the factors mentioned above, as a result of the same factors. Because changes in these factors disrupt the balance. Accordingly, interest rate policies or decreasing monetary policies are applied. Thus, changes in ratios are observed. These observations, of course, affect the citizen and directly affect the investor. This is due to the fluctuations in the value of the vehicles traded in the financial markets due to the change in rates.

Economic policies, decreases in the salaries of civil servants, decrease in tax rates, and decline in the balance of goods and services market. Therefore, fluctuations are seen in the money markets. In this context, the central bank has to reduce the required reserve ratios. In this case, there is a monetary expansion in the markets . Therefore, a price stability policy is applied by the central bank in terms of ensuring balance.

What happens as a result of the rise and fall of interest rates?

The increase in interest rates affects the investor and the consumer deeply. Therefore, the way of saving is preferred. Hot money (foreign capital) entry into the country is more. As imports increase, exports decrease. Therefore, when considered in terms of our country, blood is lost in the international market. Competitiveness decreases. For this reason, the increase in interest rates is negative for both citizens and investors. Otherwise, the effects of the decrease in interest rates are seen. There is an increase in the amount of consumption and investment. There will be more money out of our country. Thus, it becomes competitive in the global market. Export increases and imports are reduced. Interest payments are made easily.

As a result, I discussed the answers to questions such as interest, what the interest rate means, how it is calculated, why it is simple. As a result of the rise and fall of interest rates, I briefly mentioned what happens. This issue, which is related to the economy, should be known and followed by the investors in particular. Because the rising or decreasing rates affect the value of the instruments traded directly in the money markets. For this reason, if you do not want to harm, you should know the important aspects of economic data. You can learn these in detail through the free training services of the intermediary institutions. Thus, you can act consciously as successful investors. You can evaluate your savings in profitable ways.

A part of everyone's money should be in time deposits . It is relative how much it should be. It depends on one's age, risk tolerance, marital status, and many other things.

But the term deposit is a kind of money rating that everyone should know. A single important issue in Turkey, we love, we usually keep all our money here. That should change.

Click to learn about other good investment tools. 

What is the term deposit? 

The cash in the hands of the bank, and after a while the principal + interest is to take back as. So you lock your money in the bank, give you a steady return after a period of time. The withholding tax rate on the date of publication of this article is 15 percent and it is planned to reduce withholding in longer term deposits in the future. 

How does it work?

You may think that the bank borrows from you and pays back with interest. The bank lends these funds to you as loans in the form of credit. I've opened a bank account for my last seven-year-old son, he looked at the situation a little upside, "Mother, this is unfair ... Why credit to the others I gave the 26 of the bank?" He said. So I told him the importance of the banking system. Without the banks, our economy could not be developed. The banking system cannot develop in underdeveloped countries. 

Deposit rate: The bank determines the interest rate according to the amount of money you have, the time you will keep the money in the bank (maturity) and the market conditions of that day. The interest rate on deposits in banks is variable, depending on how strongly these banks want to collect money from you. 

What should be the term?

In general, the maturity is at least one month and maximum one year. As the maturity extends, the interest given increases. The longer you lend to the bank, the more it pays you. If you think that interest rates will increase, it is better to connect your money monthly instead of long term. You can determine the term according to your needs, both by your interest rate expectation and when you need money. 

Deposit Selection: There are varieties of deposits. You can make your choice in parallel with your needs. If you need the deposit amount before the maturity, there are time deposits that do not impair the maturity of the account when the money is withdrawn. Ask them about your bank. Returns fixed:

The maturity is not affected by interest movements in the market until the end, provides a constant return. So, whatever bank in the world gives you the interest you agreed to at the end of the term + your main money. 

There is a 15 percent tax charge: the rate you get from term deposits is subject to tax. This is called 'withholding'. See the net yield: The rate of deposit interest rates given to you by banks is usually gross (the rate before the withholding tax is deducted). Let's say the gross annual return is 6 percent, the net annual return that you will receive is 6 percent x 0. 85 = 5. 1 Net interest = gross interest rate x 0. 850 Returns yearly: Let's pay 1000 TL per year with 5.1 percent net interest for one month You deposit. After one month, you don't have to pay 51 TL, you will pay 4.1 TL. Because;





Interest income = Principal x interest rate x days / 36500. So in our example, 1000 x 5. 1 x 30/36500 = 4.1 (I promise, this is the math we're going to do, not that bad?) If you shoot before : If you withdraw your deposit before the due date, no interest operation can be made. Let's say there's a day to end the term and you need urgent money, you wanted to withdraw the money. You receive the money you put, but you also waived all the returns. So consider your need for cash when deciding on maturity. My advice, if you're putting money in deposits, you can divide it into two parts. State guarantees:



State security: Each bank has up to 100,000 government guarantees per person. For example: If you have 100 deposits in A and B banks, 200 thousand money is guaranteed by the state. In Turkey, we are considering a large portion of our money in term deposits. This should change. Because there is no return without risk!

Banks are making a lot of money? ...

In fact, economies consist of three sectors: private sector, public sector (government) and finance sector. Financial sector refers to the currencies of economies. When it comes to money, banks come to mind. Therefore, banks are like the essential vessels of economies. On the one hand, banks collect the money of the surpluses as deposits and, on the other hand, distribute them as loans to those in need. Banks are, in a sense, money trading; just as other businesses in the real sector trade goods and services reel

banks from time to time constitute the target of political power in Turkey. Especially in times of economies, they are like scapegoats. For example, before and during the decisions of April 5, 1994, banks were the target of turning all the arrows. Likewise, prior to the February 21, 2000 decisions, it has always been at the center of the discussions.

Nowadays they are under the lens of what the banks have done and won. The level of interest is a matter of debate. Let us look at the technical side of the business, leaving aside the political side of the business. At this point, let us first present some short bank information. We will summarize and discuss the results of the BRSA's 2016 year-end banking activity.

Obviously, let's try to perceive the size and strength of the banks. Today, there are 52 banks located in Turkey. 34 of them are deposit banking, 13 of them are development and investment banking and 5 of them are non-interest (Islamic) banking. 
The total number of branches is around 12 thousand. The number of employees in the banking sector is 211 thousand people.

The size of assets constituting the assets of the Bank of GDP, slightly above Turkey. So Turkey's total assets of the Turkish banking GDP ratio rose to 1.1 cases. So the banks are big enough and even very strong. The total assets of the banks are assets of 2.7 quadrillion TL. Of this, 1.7 quadrillion liras are the credit receivables of banks. On the other hand, the total liabilities of the banks, which are technically equal to their total assets, are in the form of deposits amounting to TL 1.4 quadrillion. Therefore, the loan to deposit ratio has been around 1.2 since the last few years. In other words, the banks collect 100 lira each despite the deposit of 120 lira credit.

In other words, banks, as deposits, primarily from the deposits obtained from a variety of sources are plotting. Of course, banks also earn interest income from loans; he pays interest for the deposits he collects. In the end, individual banking transactions, deposits and credit activities are gaining in return for other banking transactions.

In 2016, banks received TL 195 billion in lending interest income, while they paid 103 billion Turkish liras. Even when other operating income and expenses are taken into consideration, banks have provided 38 billion TL of operating income as of the end of 2016.

What does this profitability mean? ...

Banks, according to their equity, has earned around 14 percent. In other words, the return on equity was 14 percent. On the other hand, banks made 1.9% gain compared to their assets.

It's like there's no weirdness up here! ...

But when the difficult conditions of 2016 are taken into account, oddities emerge.

Namely; In 2015, while the profitability of banks according to their equity was around 11 percent, this ratio increased to 14 percent in 2016 as mentioned above. So; According to 2015, banks' profits increased by 27 percent in 2016.

But in the middle of the situation and conditions of Turkey's economy in 2016. Many sectors or sectors have lost profit while losing sectors. Obviously, the high profitability of banks is noteworthy when the situation of the private sector, where banks are selling money, is getting worse or worse. This situation is very reasonable and not sustainable. What they say ene Weeping weed will not help you laugh de.

The consumer loan is an option that enables us to take our needs both at the right time, in the right amount and in the right way, and also to comfort us economically. You have to give up some of the frequent mistakes that are made to make your life beautiful.

The most common mistakes in credit application

Let's examine what are the mistakes made when the consumer loan is withdrawn:

1- To draw a loan without the need 

First of all, you should make sure that you really need the loan. The bank offers you a pre-approved loan but if you don't need a loan, don't draw credit. Also, do not take credit for things that you are not sure will actually happen. There are two important reasons for this; the first one is the possibility of spending money other than you need. The other is to pay additional costs such as credit costs and loan interest. When you need short-term money, you can also think about cash advance. If you think credit or cash advance is more advantageous, you can learn our recommendations from this article.

2- To draw credit without doing research

Even when shopping at the grocery store, it would be a mistake not to make credit research when taking credit while researching which brand is cheaper at which market. Keep in mind that the interest rate on each bank is not the same, each bank does not want the same amount of file costs, each bank does not issue the same campaign. It is important to do a good research to save money while taking credit.

 

3- Staying with the Bank

Of course, if your own bank has a special campaign with a special loan interest rate, you can withdraw from the bank where your salary lies and you have money. But if not, learn about the loan rates of other banks instead of doing so.

4- To apply for loan to many banks

When the number of loan applications increases, there is no more chance of credit. On the contrary, your credit score set by the Credit Bureau decreases. A financially negative image of someone who constantly questions credit is formed. If you are applying to banks to conduct research between loans, you can also easily learn the interest rates of banks' loans through credit comparison sites.

5- Inability to determine the amount to be drawn correctly

In fact, you need 15,000 pounds, but you say 20,000 pounds. First of all you pay the interest and the cost of 20 thousand lira instead of 15 thousand which is more than the other. Then you increase both your total loan amount and your monthly loan payment amount, which can put you in a difficult position.

6- Not to pay attention to the maturity of credit 

If your economic power is enough to pay a loan in 24 months and you have chosen 36 months maturity, let's talk about what will happen. Firstly, the amount of your monthly payment becomes low, which is advantageous. The error is the difference between the credit interest rate of 24 months and 36 months. You will increase your total amount by selecting the credit with a 36 month maturity. And this is the exact opposite. In fact, you can easily pay 36 months in a month with a loan of 24 months and do not have difficulty in paying loans every month. Make a loan payment plan that suits your budget.

7- Not to check the cost of credit

You made a comparison for the loan interest rates and choose a loan with a rate of 1.1. Wait a minute and check the cost of the loan before selecting the loan and applying. In some cases, the loan interest rate is low and due to the bank's file costs, the loan may become unproductive. It is best to use the loan before; To examine the full details of the loan consisting of factors such as TOTAL CREDIT REFUNDS + CREDIT RATE + MONTHLY PAYMENT AMOUNT + CREDIT INTEREST RATE + CREDIT COST + TAXES. Accurately calculating the credit keeps your money in your pocket, you can check this content to learn the method.

8- To sign the forms without reading the forms 

Your research on credit, your choice of bank, your research on the terms of the credit, there is a moment when all but all are determined. At this time, your monthly payment plan, interest rate of the loan, insurance and many details are filled in. Definitely read the application forms before signing. Banks publish credit agreements on the Internet before the application, or on the Internet, if you do not forget to read the forms in the branch.

9- Using the loan as non-refundable

A loan that you get from the bank under certain conditions. So before you buy, compare and find the most appropriate credit , then make a plan for both payment and spending.

How is the learning loan structured?
What is Tuition Loan?
Learning credits; It is an alternative method offered to students who have not been eligible to receive a scholarship as a result of the scholarship / loan applications initiated by the Credit Dormitories Authority every year. There is also a citizen of the Republic of Turkey in financial support to students in higher education, social and cultural development is also paid on a monthly basis to pave the way for students moving target. Associate degree students, undergraduate students, master's and Ph.D. students, students who have priority from open education students (such as the parents of the deceased, martyr-veterans), graduated from two-year schools enrolled students; benefit from the tuition loan. Students who start to take credit continue to take their credits during the normal duration of the institution of higher education. The only difference between tuition and scholarship is; the credit is counted instead of olm debt daha and the student will repay the loan later. Students will pay back the amount, Turkey Statistical Institute Domestic Producer Price Index is calculated taking into account the increase in.

How Does a Learning Loan Configuration Work?
KYK credit configuration; means to arrange the payment of the debtor student and to pay the installment. After graduation, Kyk questioned the debt, many students who learned the amount of debt in the minds of "How to configure the learning loan?" such questions appear.
The structuring of a learning loan is now carried out in two ways:

Online Configuration Online
The first of these methods; Make online configuration via internet.
If the loan debts are not paid on time, they are directed at the Tax Office and the configuration applications are made from the official website of the Revenue Administration, www.gib.gov.tr. By logging into the site with the necessary information such as your T.C ID number, you can perform the KYK configuration process over the internet.

Configuration in the Tax Office
The second method of structuring your KYK debt is; To apply to the Tax Office.
You can apply by going to the Tax Office or by sending your petition via post, you can configure your debt.
During the configuration, you should pay attention to the 6-9-12-18 installment option, pay your debts every 2 months, and the configuration will fail if you do not pay the first two debts.

How does Credit Card and Credit Debt Configuration Process Work?
Credit and Credit Card Debt Configuration Process
When you have difficulty paying your accumulated credit card and loan debts, it is first necessary to discuss with the bank in the debt configuration as an alternative solution. After informing the bank that the debt is structured and asked to be paid in the relevant unit of the bank, the debt is calculated. In calculating the debt, the banks calculate the total outstanding debt of the credit card and the total debt of the installments. In the loan configuration, the remaining maturity and the calculation of the outstanding debt shall be taken into account. In the configuration, banks can divide the debt on the required maturity and make maturity according to your budget. In the credit card debt restructuring of banks, the interest rate is calculated and if the interest rates decrease again in the following period, restructuring can be made.

Should I Configure My Debts?
Structuring debts allows to create a practical payment method especially for those who have more than one credit card debt and those who borrow from various banks. Interest rates are the most important thing to consider in the configuration based on the collection of debts under a single roof in order to eliminate the confusion occurring in cases such as the disruption of debts, the interruption of the accounts, the overlap of payments or forgetting the debts. It is recommended to select the bank by comparing the different interest rates offered by the banks in structuring the debts and the maturities must be determined in line with the budget. Since the interest rates of the banks change from bank to bank, the banks with the lowest interest rate and the most suitable payment option are determined. In the event that regular payments are not made in the configuration, it is important to pay attention to the regular payment of debts as the credit rating may be dealt with negatively.

In Which Bank Should I Configure Debt?
One of the issues to be considered before going to the configuration is bank selection. If the bank goes into a configuration in which the consumer is in debt, the bank may charge fees under the configuration cost and file costs. The configuration can also be carried out in different banks, and banks' debt restructuring-related campaigns can be examined. Interest rates are also effective in bank selection. If you are wondering how the credit card and credit debt restructuring process works, you can examine the information on banks' websites and collect your debts under a single roof and create a payment plan with tekkredi.com.