Deposit yields shine in Türkiye: What can you earn with $5K in one month?
The illustrative image shows a 50 kurus Turkish coin with trend lines, symbolizing fluctuations in Türkiye’s financial markets amid shifting monetary policies. (Collage by Türkiye Today)
As interest rates begin rising again in Türkiye, deposit accounts have re-emerged as one of the safest and most profitable investment options for Turkish lira holders. With yields reaching up to 50% on select maturities, returns are currently well above the country’s annual inflation rate.
Several banks are now offering interest rates of up to 50% for term deposits with maturities of 32–45 and 92–95 days, reflecting tighter liquidity conditions in the financial system.
Based on a 50% annual interest rate, here are the approximate net monthly earnings for various deposit amounts:
- For a ₺190.487 ($5,000): ₺7,095 ($186.24)
- For a ₺250,000 deposit: ₺9,315
- For a ₺500,000 deposit: ₺18,630
- For a ₺1,000,000 deposit: ₺37,260
Why are Turkish banks raising deposit rates?
Deposit interest rates in Türkiye had been declining following recent monetary policy decisions by the Central Bank of the Republic of Türkiye (CBRT), which lowered the benchmark rate from 50% to 42.5% through consecutive cuts in its last three meetings, as of March.
The monetary easing was largely prompted by a steady decline in consumer inflation, which fell below 40%. Official data showed annual inflation in Türkiye dropped for the 10th consecutive month, reaching 38.10% in March.
However, in response to rising global economic uncertainties and to stabilize the Turkish lira, the central bank recently raised the overnight lending rate to 46%. This has increased borrowing costs for commercial banks, tightening liquidity across the system. As a result, banks have had to raise their deposit rates to attract funding, making high-yield term deposits more appealing to investors seeking safer returns amid volatile conditions.
Outlook for monetary policy
Despite the downward trend in inflation offering room for further rate cuts, the risk of renewed inflationary pressures—triggered by external shocks or geopolitical developments—makes continued easing a cautious prospect.
Market participants expect the central bank to pause its rate cuts at its upcoming meeting in April, opting to maintain the current policy stance at least until the next Monetary Policy Committee (MPC) meeting scheduled for June, according to the latest official survey.
The CBRT’s next policy meeting is set for April 17 at 2:00 p.m. local time (GMT+3), where the policy rate that influences deposit returns will be reassessed.
