Foreign capital surge fuels Turkish bank deposits as rates climb to 50%
File photo shows stacks of Turkish lira banknotes, primarily 200 and 100 Turkish lira bills, bundled with red straps, accessed on August 25, 2025. (AA Photo)
Turkish lenders have witnessed a surge in foreign inflows into large-scale bank deposits, with the number of non-resident account holders with balances exceeding ₺1 million ($26,232) rising to 184,400 in February 2025. Their total deposits reached ₺1.14 trillion, driven by rates of up to 50% amid ongoing tight monetary policy.
These figures reflect an increase of 5,406 account holders and a ₺23.7 billion rise in total deposits.
According to data from the Banking Regulation and Supervision Agency (BRSA), of the total of non-residents, ₺404.5 billion was held in Turkish lira accounts, ₺699.1 billion in foreign currency, and ₺34.4 billion in precious metals. The average deposit per non-resident high-value account holder was calculated at ₺6.17 million.
How much does $5,000 yield in a month?
This surge in foreign interest aligns with Türkiye’s ongoing disinflation program, under which the Central Bank of the Republic of Türkiye (CBRT) has maintained a tight monetary policy stance. The policy rate was previously reduced in three consecutive meetings from 50% to 42.5%, with each cut amounting to 250 basis points.
However, persistent inflationary pressures and heightened global uncertainties prompted the CBRT to raise the overnight lending rate to 46% in March, leading commercial banks to offer deposit interest rates of up to 50%. These developments have significantly improved the real return potential of lira-denominated assets. Annual inflation, which stood at 38.1% in March, has now declined for ten consecutive months.
Several banks are currently offering interest rates of up to 50% for short-term deposits, particularly those with maturities ranging between 32–45 and 92–95 days, reflecting tightening liquidity conditions in the financial system. At this rate, a deposit of ₺190,487 (approximately $5,000) yields a net monthly return of around ₺7,095 ($186.24).
In its latest meeting on April 17, the CBRT raised the policy rate by 350 basis points to 46%, signaling a potential further increase in deposit interests.
Meanwhile, the number of domestic high-value depositors also increased, with Türkiye-based account holders holding more than ₺1 million reaching 2,123,799 as of February 2025—an increase of 115,871 since the end of 2024. The total deposits held by this group rose to ₺15.49 trillion, up from ₺14.79 trillion in December.
Among domestic residents, ₺9.76 trillion was held in Turkish lira accounts, ₺3.72 trillion in foreign currency, and ₺870.2 billion in precious metals. The average deposit for this segment stood at ₺7.4 million.
