New account boom in banks! 'Welcome' interest rates are filling pockets

Recently, the expectation of a decline in interest rates has mobilized investors holding cash. As the "welcome" interest rates offered by banks have risen to the 53-55% level, investors are moving their money to different banks to secure the highest returns.

This situation has led to a significant increase in the opening of new customer accounts; daily new account openings have risen from 3-4 to 10. The economic administration's efforts to combat inflation and the decline in inflation according to TUIK data are increasing expectations for interest rate cuts in the markets.

However, bankers emphasize that these high rates are not sustainable.

DISINFLATION PROCESS INCREASES EXPECTATIONS

While the economic administration continues its fight against inflation, an expectation has formed in the markets that interest rates will also decline along with inflation toward the end of the year. According to data announced by TUIK, annual inflation was 49.38% in September 2024. Turkey's Medium-Term Program (OVP) projects that inflation will fall to 41.5% by the end of 2024 and to 17.5% in 2025.

Although upward updates have been made compared to past forecasts, it is observed that inflation is on a downward trend.

Inflation, which was 83.45% in September 2022, fell to 61.53% in 2023 and to 49.38% in 2024. At the same time, the Central Bank of the Republic of Turkey (TCMB) kept the policy rate steady at 50% at its sixth meeting in September 2024, skipping interest rate hikes since March 2024. These developments are increasing the possibilities and expectations for interest rate cuts.

CASH HOLDERS ARE CHASING OPPORTUNITIES

The expectation of a decline in interest rates has mobilized investors holding cash. The acceleration of the deposit race among banks toward the end of the year and the rise in interest rates are causing depositors to move their money to different banks to capture the highest rates. With the "welcome" interest rates offered by banks, interest rates have climbed to the 53-55% band, which has created a rush among consumers not to miss out on high returns.

NEW CUSTOMER ACCOUNTS INCREASED

According to information received from the banking sector, the rate of opening new customer accounts has increased recently with the rise in interest rates. While 3-4 new customer accounts were opened per day previously, this number has now risen to approximately 10.

It is noteworthy that deposit interest rates are at the 50-55% level, but bankers state that these high rates are not sustainable in the long term. Additionally, the 7.5% tax applied to deposit interest should not be forgotten.