Bad news for those keeping money in deposits: Major drop in monthly returns

Deposit interest rates have recently entered a downward trend. The expectation of possible interest rate cuts from the Central Bank is also reducing the interest income that investors will earn. Millions of deposit investors are trying to evaluate their investments with lower interest rates.

Expectations that interest rates will fall further in the future are affecting the strategies of deposit investors. While investors are looking for suitable opportunities to maximize their interest income, uncertainties in inflation and interest rate policies are making investment decisions difficult.

The strong rise seen in gold and silver prices recently reveals a remarkable difference when compared to deposit interest rates. Precious metals such as gold and silver offer higher earning opportunities compared to deposit interest rates.

CENTRAL BANK ANNOUNCED INTEREST RATES

According to the deposit interest rates announced by the Central Bank of the Republic of Turkey, interest rates for short-term investments have been determined as follows:

Deposits with a maturity of up to 1 month: 47.5 percent

Deposits with a maturity of up to 3 months: 49.82 percent

Deposits with a maturity of up to 6 months: 44.53 percent

Deposits with a maturity of up to 1 year: 42.06 percent

Deposits with a maturity of 1 year and longer: 26.87 percent

HOW MUCH INTEREST WILL 100 THOUSAND LIRA EARN?

A customer who will invest 100 thousand lira in a 1-month deposit earns a net interest income of 3,266 lira. This rate clearly reveals the earnings that investors will obtain in a low-interest environment.

Withholding tax rates applied to deposit interest are another factor affecting investors. While the withholding tax rate has been set at 17.50 percent for demand and notice accounts and accounts with a maturity of up to 6 months, this rate is applied as 15 percent for accounts with a maturity of up to 1 year, and 10 percent for accounts with a maturity of 1 year and longer.