Deposit Rates Enter Central Bank Week with a 2-Point Drop

As the Central Bank of Turkey prepares for its Monetary Policy Committee meeting tomorrow, the banking sector has already adjusted deposit rates ahead of the expected rate cut. Some banks lowered their deposit interest by 200 basis points at the start of the week, anticipating a policy rate cut from 43 percent to 41 percent.

Banks Move Ahead of the Central Bank

Although the Central Bank’s current policy rate stands at 43 percent, several banks implemented reductions before the official decision. In some cases, even deposits under 100,000 lira with a 32-day maturity dropped below 40 percent. The market expectation for tomorrow’s meeting is a 200 basis point cut, but analysts note the decision could be more cautious, ranging between 100 and 150 basis points, especially amid political tensions.

While credit rates tend to lag behind due to macroprudential restrictions, deposit rates usually reflect policy changes immediately. This time, banks preemptively moved to lower their offers.

Deposit Rates Differ Across Banks

According to bank websites, the lowest rate for a 32-day maturity on deposits up to 100,000 lira is now 35.5 percent at İş Bank. Vakıfbank follows with 36 percent, Ziraat Bank with 38 percent, and TEB with 38.5 percent. Fibabanka offers 40 percent, Yapı Kredi 41 percent, Garanti BBVA and Akbank 43.5 percent, Halkbank 44 percent, and Denizbank tops the list with 45 percent. The spread among banks on 32-day maturities is nearly 10 points.

For 46-day deposits, several banks already went below 40 percent after the July rate cut. Current offers include İş Bank at 34 percent, Akbank at 33 percent, Fibabanka at 30 percent, while Denizbank and QNB remain above 40 percent.

At 92 days, the divergence widens. Halkbank proposes 35 percent, İş Bank 33 percent, Vakıfbank and Denizbank 34.5 percent, while Akbank offers as high as 42 percent.

TL Deposits Hold Strong Share

Despite declining interest rates, Turkish lira deposits remain a key tool in inflation control. The Central Bank continues to rely on the lira as a valuable anchor. As of late August, standard TL deposits reached 14.53 trillion lira, making up 60.66 percent of total deposits, one of the highest levels in recent years. Analysts suggest higher withholding taxes have not discouraged savers from keeping money in TL deposits, though psychological shifts among investors could emerge if returns fall further.

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