Skip to content
News from Turkey

Deposit Interest Rates in Türkiye Surge Back to 50% Ahead of Central Bank’s Rate Decision

Lira

As Türkiye's markets await the Central Bank’s interest rate decision on April 18, deposit rates have rebounded to 50%, marking the highest level seen in months. According to official data, deposit yields in March exceeded inflation for the first time in over four years, offering a real annual return of 39.18%.

Tight Monetary Policy Fuels Return to High Yields

Following a surprise tightening move by the Central Bank of the Republic of Türkiye (CBRT) in March — when the overnight lending rate was raised to 46% — banks began revising their deposit interest offers upward, especially for short-term savings.

While standard offers hover between 45% and 47.5% for most customers, new client promotions have reached up to 50%, drawing attention from savers seeking protection from rising inflation and currency volatility.

First Real Yield Over Inflation Since 2019

In a milestone for Turkish depositors, March's deposit rate of 39.18% provided the first inflation-beating return in 52 months, according to official inflation figures.

Eyes on Thursday’s Central Bank Rate Decision

The most closely watched event in Türkiye's markets this week is the Monetary Policy Committee (MPC) meeting scheduled for April 18 (Thursday). Most analysts expect the benchmark policy rate to remain unchanged at 42.5%, but surprise decisions, like last month's unscheduled hike, keep the markets cautious.

In March, the CBRT held a surprise meeting and raised the upper limit of the interest rate corridor, creating a tighter liquidity environment. This move indirectly pushed deposit rates higher, as banks adjusted to maintain competitive savings offerings.

What Does a 50% Deposit Rate Really Mean?

With interest rates at 50%, Turkish lira time deposits have become attractive again for those seeking short-term returns. Here's how the returns look for typical savings amounts over a 32-day maturity:

  • ₺500,000 deposit at 50% interest:

    • End-of-term: ₺518,630

    • Net gain: ₺18,630

  • ₺1,000,000 deposit at 50% interest:

    • End-of-term: ₺1,037,260

    • Net gain: ₺37,260

This revival in deposit interest marks a renewed attempt by the CBRT to anchor inflation expectations and shore up the Turkish lira by attracting lira-denominated savings.

Related articles