Turkish banks adjust lira deposit interest rates following central bank signals

Türkiye’s banking sector intensifies efforts to boost short-term Turkish lira deposit volumes, following the market’s interpretation of the Turkish central bank’s most recent Monetary Policy Council statement on Nov. 21 as a dovish message for an interest rate cut in December.

Banks raised 32-day maturity deposit interest rates by up to 200 basis points, depending on the deposit amount, while reducing 3-month maturity rates between 50 and 100 basis points.

According to a Turkish publication, ekonomim.com, banks seek to improve their balance sheets and highlight their performance during the final 1.5 months of the year.

The sector shifted competition in standard Turkish lira deposits toward 32- and 45-day maturities, adjusting interest rates for deposits with maturities of three months or longer.

Banks reduced interests to 31.5% for up to 3-month maturities

Based on interest rates published on banking websites, 32- and 45-day deposit rates now surpass those of deposits with up to three-month maturities, which had been the most popular option:

• Ziraat Bank offers an interest rate of 40% for deposits up to ₺50,000 ($1.442) with 32-, 45-, and 3-month maturities. For deposits exceeding ₺100,000, the rate increases to 43%.
• Vakif Bank provides a 39% rate for 32- and 45-day maturities, decreasing to 38% for up to three months.
• Is Bank offers 39% for deposits up to ₺50,000 with 32- and 45-day maturities, reducing to 38% for three months. For deposits above ₺100,000, the bank offers 42% for 32- and 45-day terms.
• Halk Bank proposes a 39% rate for 32- and 45-day deposits, dropping to 35% for up to three months.
• Garanti BBVA provides a 37.5% rate for deposits up to ₺50,000 with 32- and 45-day maturities, which declines to 31.5% for three months.
• Yapi Kredi offers 46% for 32-day deposits and 45% for 45 days on amounts up to ₺50,000. The rate decreases to 43% for up to three months. For deposits exceeding ₺250,000, the bank offers 46.5% for 32 days and 45% for 45 days.
• Ak Bank maintains a 37% rate for all maturities on deposits up to ₺50,000 , increasing to 39-40% for amounts exceeding ₺100,000.
• QNB Finance Bank provides a 40% rate for deposits up to ₺50,000 with 32-day maturities, decreasing to 37.5% for 45 days and 36% for three months.