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Bank interest rates and deposits in Poland


lef 11 | 477  
20 Jun 2007 /  #1
I know the current rates for a term deposit is about 4%, but one of my relative in Poland has mentioned that you can get between 40% and 70% per year in a scheme offered by the banks.

Is anybody aware of such a investment scheme and is it secure.
I know in the early 90's there was a investment product that offered 70% return and this was honored.
I wonder if its too good, its too good to be true rule still applies?

Thanks in advance.
hello 22 | 890  
20 Jun 2007 /  #2
40-70% - if anything, it sounds like a scam scheme (unless it's a short term loan, but not annual).. If that was true, the foreign ivestors would flock to Poland ;).
OP lef 11 | 477  
21 Jun 2007 /  #3
If that was true, the foreign ivestors would flock to Poland ;).

I was looking at the Pioner Pekao site (pionier fundusz), interesting, with interest like that why would you bother going into real estate.
most - | 27  
21 Jun 2007 /  #4
Its not secure - those are funds based on equity investments, mainly in Polish stock market. So last year they gave exceptional returns because the market did well
OP lef 11 | 477  
21 Jun 2007 /  #5
So last year they gave exceptional returns because the market did well

70% is not a bad return, I think the stock market will do very well for some time. If the stock markets crash so will the real estate market.

Shares in food companies can only go up.
hello 22 | 890  
21 Jun 2007 /  #6
70% is not a bad return

I think it's a great annual return. But you still have to pay tax on that.

Shares in food companies can only go up.

Organic for sure.
OP lef 11 | 477  
21 Jun 2007 /  #7
I think it's a great annual return. But you still have to pay tax on that.

true, you still pay tax when you profit from real estate, and this seems hassle free.
This product has been on the market for a long time and to date it has done very well.
(it also has the backing of Polands biggest bank)
hello 22 | 890  
21 Jun 2007 /  #8
But the bessa is every few years, so it's a little like playing the lottery.
Scruffy Man  
2 Jan 2009 /  #9
Merged: Deposit Interest Rates in Poland

Hi,
What interest rates are Polish banks offering on deposits? Is this rate current seeing as the NBP are lowering the base rate?
Which bank is the safest to bank with, i.e. trying to avoid a northern rock type expierience?
Thanks.
delphiandomine 88 | 18,177  
5 Jan 2009 /  #10
If you're thinking on depositing in Złoty to try and make more money out of interest, then you're an absolute idiot to say the least. It's fine and well for those of us living and working in Złoty - but for outsiders, particularly from the UK - it's quite simply a ridiculously foolish bet. The Zł/Pound rate is bouncing around the place like wild at the minute - the 3% you might make could easily be wiped out if the Złoty does end up crashing like predicted.

As for a Northern Rock experience - what exactly is wrong with NR, bearing in mind that no bank will be safer than one owned by the UK government?
Guest  
7 Jan 2009 /  #11
Hi delphiandomine,

Try not to jump to conclusions to quickly!!

I am not exactly an "outsider"" (wooo...you make it sound a bit like Red neck country)...I have lived in Poland for a few years but I still run a polish business and my money is earned in zloty and my future commitments are in Polish zloty so my intention is that any money I make in Poland over the next 12 months I would like to keep it on deposit in Poland and earn the highest interest rate rather than convert it to Euro (I'm Irish not British hence the euro).

Lots of banks are offering 7-8% last time I looked so not sure where the 3% you quoted actually comes from.

As regards the Polish zloty, I don't think it will crash "as predicted" as you state...but I am a mere mortal and know little about currencies accept for what I read and according to Bloomberg yesterday

By Stanley White
Jan. 5 (Bloomberg)
Economic Recovery
The dollar, yen and Swiss franc may weaken this year
against 2008's biggest losers in the currency markets as the
global economy starts to recover, the largest foreign-exchange
strategists and investors say.
The winners will be the Brazilian real, Indonesian rupiah
and Polish zloty as investors return to higher-yielding assets,
according to Bloomberg News surveys.

....but hey, what do they know :)

Finally...what’s wrong with NR...absolutely nothing...now that it's government guaranteed....but try telling that to the people that had deposits there prior to government backing.....it was a nervous few weeks. I don't want to go through that experience as there is no guarantee that the Polish government will do the same if one of the polish retail banks gets in trouble...not that I think it will but there are a few banks that are really struggling in Poland at the moment.

So...if by any chance you have the info I was originally asking for then I would be pleased to hear it.

Pozdrawiam
LwowskaKrakow 28 | 431  
9 Jan 2009 /  #12
So...if by any chance you have the info I was originally asking for then I would be pleased to hear it.

Why don't you try Zachodni Bank(BZWBK) ? It belongs to an Irish Bank and the Irish Government said it would warrantee al the deposits without any limit.
Guest  
9 Jan 2009 /  #13
Thanks LwowskaKrakow,

I see they habe reduced their rate from 8% to 7%, I was wondering was their any better out there? I will be in Krakow next week so will check.

Incidently, I'm not sure the Ireish Government guarantee covers their subsideries in differnt countries. I would doubt it but I may be wrong. I see on the BZWBK website that they are saying they are covered by the polish bank ganrantee.

To be honest, if they were guaranteed by the Irish governmnet they wuld have an unfiar advantage and any polish saver with some knowledge of finance would move their money there....just like all the Irish savers moved their deposits to Northeren Rock before the Irish Guarantee.
benszymanski 8 | 465  
9 Jan 2009 /  #14
Normally the longer you agree to tie up your money with a bank, the higher the interest rate they give you, but right now because the Polish banks expect the base rate to be reduced by the national bank the highest rates to be had are for short 3 month loans at the moment. They were talking about this this morning on RMF FM as it's a bizarre situation...

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