Economy in Turkey: Here are the latest return rates on deposit interest as of November 4, 2024

With the increase in withholding tax rates, the interest income on Turkish lira deposits and funds is expected to decrease, while banks continue to compete in offering attractive interest rates. Here are the latest deposit interest rates from various banks.

In a regulation on withholding tax rates under Article 67 of the Income Tax Law, the withholding tax rate on Turkish lira deposits has been raised. According to the Presidential decision published in the Official Gazette, the withholding tax rate has been increased from 7.5% to 10% for deposits with a maturity of 6 months, from 5% to 7.5% for deposits with a maturity of up to 1 year, and from 2.5% to 5% for deposits with maturities longer than 1 year. This regulation is effective until January 31, 2025.

This new regulation will lead to a decrease in net interest income on deposits. However, the decrease will stem from the increased withholding tax going to the Treasury, not from the interest rate offered by banks. For instance, while previously a 7.5% withholding tax on a 500,000 TL deposit would result in 7,500 TL going to the Treasury, with the new rates, this amount will rise to 10,000 TL. Consequently, there will be a decline in the net income from deposit interest for account holders.

Here are the current net earnings for a 32-day term on a 1 million TL deposit:

– QNB Finansbank

  – Interest Rate: 37.25%

  – Net Earnings: 30,208 TL

  – Total at Maturity: 1,030,208 TL

– Yapı Kredi

  – Interest Rate: 41%

  – Net Earnings: 33,249 TL

  – Total at Maturity: 1,033,249 TL

– İş Bankası

  – Interest Rate: 42%

  – Net Earnings: 34,060 TL

  – Total at Maturity: 1,034,060 TL

– Garanti BBVA

  – Interest Rate: 48%

  – Net Earnings: 38,926 TL

  – Total at Maturity: 1,038,926 TL

– Akbank

  – Interest Rate: 49%

  – Net Earnings: 39,737 TL

  – Total at Maturity: 1,039,737 TL

– Denizbank

  – Interest Rate: 50%

  – Net Earnings: 40,548 TL

  – Total at Maturity: 1,040,548 TL

– ING Bank

  – Interest Rate: 52%

  – Net Earnings: 42,170 TL

  – Total at Maturity: 1,042,170 TL

– TEB

  – Interest Rate: 53%

  – Net Earnings: 42,981 TL

  – Total at Maturity: 1,042,981 TL

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