Decline in deposit interest rates: How much is the 32-day return on 1 million TL?

Markets in Turkey are focused on the interest rate decision that the Central Bank will announce today at 14:00. The expectation of an interest rate cut has caused banks to lower their deposit interest rates, a situation that is drawing the attention of investors.

Deposit interest rates, which were at the 59.44 percent level at the end of 2023, have fallen to 48.5 percent as of February 21. This decline has led investors to follow deposit interest rates more closely.

INCREASE IN WITHHOLDING TAX RATES

In parallel with the Central Bank's interest rate decision, there has also been an increase in withholding tax rates on deposits. The withholding tax rate for maturities up to 6 months has increased from 10 percent to 15 percent, and for maturities up to 1 year, it has risen from 7.5 percent to 12 percent. For deposits with maturities longer than 1 year, the withholding tax rate has been raised from 5 percent to 10 percent. These changes may affect the net interest returns of investors.

INTEREST RETURNS OFFERED BY BANKS

According to reports by Sözcü, differences in interest rates are observed among banks. Here are the 32-day deposit interest returns for 1 million TL from some banks:

• Vakıfbank: 32 thousand 789 TL interest return with a 44 percent interest rate.
• Akbank: 33 thousand 162 TL interest return with a 44.5 percent interest rate.
• Enpara: 30 thousand 553 TL interest return with a 41 percent interest rate.
• Ziraat Bankası: 29 thousand 808 TL interest return with a 40 percent interest rate.
• Yapı Kredi, Halkbank, ICBC Bank: 29 thousand 63 TL interest return with a 39 percent interest rate.
• İş Bankası: 26 thousand 827 TL interest return with a 36 percent interest rate.

These rates indicate that investors have reached an important decision-making stage. Deposit holders continue to monitor the interest rate decision to be announced by the Central Bank closely.