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Savings Interest Rates


#1  2011-11-17 13:10:46

fidobsa
Contributor
fidobsa
From: Belezna
Registered: 2011-11-11
Posts: 168

Savings Interest Rates

I don't live in Bulgaria although I do own a Building plot in Nikiup. I've heard that some banks in Bulgaria offer good interest rates on savings accounts. Do you think my money would be safe in a Bulgarian bank and can anyone recommend a good account?




 
 
 

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#2  2011-12-04 23:34:43

harryoooh
New member
From: Veliko Tarnovo
Registered: 2009-01-26
Posts: 4

Re: Savings Interest Rates

There isnt one bank in Bulgaria that is Bulgarian. They are all foreign banks. Money should be safe but spread it around a bit. Very good interest rates!!




 
 
 

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#3  2012-11-11 19:28:48

annanirvanna
Member
Registered: 2012-10-18
Posts: 21

Re: Savings Interest Rates

Harryooh:  can you advise what types of rates are available.  I am also looking to put some money into a savings plan and use the interest for paying expenses and and when they crop up.  At present I have a saving plan in Egypt giving 12.5%pa.  So if I can get a good rate I would rather withdraw from Egypt and keep my finances 'closer to hand' and invest in my (hopefully) new country.  Anyone can help with % amounts?

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#4  2012-11-12 13:07:57

Aurélie
Team
Aurélie
From: Pamplemousses
Registered: 2012-05-02
Posts: 19923

Re: Savings Interest Rates

Hello annanirvanna, this thread is dated 2011. Maybe you could start a new one on the Bulgaria forum for more visibility. smile

Thank you,
Aurélie




 

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#5  2012-11-12 15:23:38

annanirvanna
Member
Registered: 2012-10-18
Posts: 21

Re: Savings Interest Rates

Hi -- again Aurelie.  I should call you my guardian angel as you have kindly responded to all me new threads with help and advice smile,

New thread has now been posted by me - fingers crossed lovely expats in BG will reply and give me some much needed advice big_smile

Warm regards

Annie

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#6  2012-11-15 19:34:14

beahor
Active member
From: Sofia
Registered: 2012-08-26
Posts: 40

Re: Savings Interest Rates

hi annanirvanna

Yes, there are good rates available depending on what currency you deposit it in. Less for Euros more for Leva.
But, and that is a big BUT, you have to be resident in Bulgaria otherwise you are taxed on it.

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#7  2012-11-16 10:37:01

annanirvanna
Member
Registered: 2012-10-18
Posts: 21

Re: Savings Interest Rates

Hi Beahor

Thanks for getting back to me.  I have a number of monthly UKP pensions that I could pay direct into a BG bank account.  I also have a lump sum currently in Egyptian a/c that I could have transferred to a BG bank in UKP.

So what rates are available, do you know?
What banks do you or any other forum member recommend?
How easy is it to get Residency?  We are both UK citizens who are over 60 years and pensioners.
Do you know what % tax is incurred?

Any help on the questions above will be gratefully received.  We are so worried of messing up again.  Mistake No. 1 was emigrating from UK to Egypt.

Last edited by annanirvanna (2012-11-16 10:37:56)

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#8  2012-11-16 20:54:18

beahor
Active member
From: Sofia
Registered: 2012-08-26
Posts: 40

Re: Savings Interest Rates

Hi,
As you know Bulgaria is in the EU so resident status is more or less automatic if you come from any member state.
And saving rates available are freely available on the internet and are generally double of what you get in the UK or Germany for that matter. You can invest in Dollar, Euros or Leva of course.
It is also my understanding that the first 100k of investment is covered in case banks are defaulting.
But as always, do you homework and maybe come to see the country for yourself. Investing at good rates in only worth it if you like living here too.

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#9  2012-11-17 08:33:41

annanirvanna
Member
Registered: 2012-10-18
Posts: 21

Re: Savings Interest Rates

Thanks once again Beahor for taking time to post a reply back.  Will do some Googling later on to see what banks & savings plans are available.

Yes I agree a recce trip is important and I will hopefully be over in BG before year end.  So can do some serious data gathering and getting a feel for BG lifestyle.

At least the residency is one thing I don't seem to have to worry about - what a blessing that will be, not having to travel 250K every year to get an annual visa & hope the 'goalposts' have not been moved meaning I get refused.

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#10  2013-02-16 12:34:33

Varnarama
Member
From: Blackpool
Registered: 2013-02-15
Posts: 11

Re: Savings Interest Rates

TBI Bank are offering a very tempting 7% deposit account.
You have to deposit the money before the end of march though.
http://www.tbibank.bg/en/personal-banki … e-deposit/

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#11  2013-02-16 17:52:17

beahor
Active member
From: Sofia
Registered: 2012-08-26
Posts: 40

Re: Savings Interest Rates

Rates of 5% upwards are not uncommon in Bulgaria and you can invest in Leva, Euro and even Dollar. And in common with all Euro states the first 100000 of desposit are safeguarded. So, I am not quite sure what you mean by is the money saf? But, and here is the important point, you need to physically live in Bulgaria to take adavantage of this, else you deposit is taxed at the going rate.

But do your research as all this info is freely available on the internet

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#12  2013-02-16 18:44:07

Varnarama
Member
From: Blackpool
Registered: 2013-02-15
Posts: 11

Re: Savings Interest Rates

One concern regarding the safeguarding of the first 100,000E, is the fact that the BDIF(Bulgarian Deposit Insurance Fund)is not backed by the government; it is in essence a private insurance fund taken out by the member banks.

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#13  2013-02-16 18:57:12

beahor
Active member
From: Sofia
Registered: 2012-08-26
Posts: 40

Re: Savings Interest Rates

I think this is pretty academic an argument. Even countries can default on their obligations. Especially if they are rated junk status like greece. So, you need to weigh-up the risks and my personal opionion is that I would  in Frankfurt.

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#14  2013-02-16 19:11:54

Varnarama
Member
From: Blackpool
Registered: 2013-02-15
Posts: 11

Re: Savings Interest Rates

Sorry beahor, I dont understand your last sentence.
Are you saying it is in your opinion, a risk worth taking?

Also, what I cant understand is - if the rates are this good (7% compared to the best rate of 2% in the UK), why arent foreign investors pouring their money into these accounts?
With internet banking - you'd have thought it would be reasonably straight forward.

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#15  2013-02-16 19:42:17

beahor
Active member
From: Sofia
Registered: 2012-08-26
Posts: 40

Re: Savings Interest Rates

As I said already.
You need to live in Bulgaria to get these rates net of taxable income.

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#16  2013-02-16 20:02:52

Varnarama
Member
From: Blackpool
Registered: 2013-02-15
Posts: 11

Re: Savings Interest Rates

The Bulgarian interest rates are now taxed 10% (as of january 31st) whether people are resident in Bulgaria or not.

Bank rate interest in the UK are taxed by 25% whether you deposit in a bank account in the UK or Bulgaria.

2%(UK) v 7%(BG) -25% = 1.5% v 5.65%

So if based in the UK, you should be able to get a rate of 5.65% after tax, which is 4.15% higher than any UK account.

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#17  2013-02-17 17:17:57

beahor
Active member
From: Sofia
Registered: 2012-08-26
Posts: 40

Re: Savings Interest Rates

No, you umderstood me wrong here or I did not make it sufficently clear.
A work mate of mine was hit with a 10% tax on the whole amount on his account as he was not properly registered as Bulgarian resident. The bank somehow missed this fact and he promptly got deducted some 5000 leva from his balance.
He is still trying to recover it.

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