Short-Term TL Deposits Become Dominant Trend

Tight Monetary Policy Shifts Investor Behavior

Since the implementation of tight monetary policy in Turkey beginning in June 2023, investors have increasingly turned to Turkish Lira (TL) deposits. As a result, the share of TL in total bank deposits has risen significantly. More importantly, investor behavior regarding deposit maturities has shifted sharply. In an environment marked by high inflation and rising interest rates, depositors have opted for short-term maturities to take advantage of potentially higher rates at rollover. Political and economic uncertainties have further reinforced this preference.

TL Deposits Grow, But with a Shift Toward Short Maturities

While TL deposits made up about 35% of total deposits in mid-2023, this share climbed to over 58% by June 2025. However, the most striking development lies in the distribution of maturities. Whereas deposit maturities had previously been more evenly spread, a large majority of TL deposits are now concentrated in terms shorter than three months. The trend indicates a clear shift driven by expectations of continued interest rate hikes.

Data Reflect Growing Preference for Short-Term Deposits

Figures from the Banking Regulation and Supervision Agency (BDDK) highlight this shift. The share of deposits with maturities of up to one month has grown noticeably, as has the portion with one to three-month terms. In contrast, deposits with maturities of three to six months, six to twelve months, and over one year have declined sharply. This points to a lack of investor confidence in long-term commitments and a strategy centered around maintaining flexibility and capitalizing on rising interest rates.

Individual Investors Lead the Shift

The transition to short-term deposits is even more pronounced among individual investors. Deposits with three to six-month maturities have dropped dramatically, while those under three months have surged. After two years of strict monetary policy, individuals are increasingly avoiding long-term locking of funds, opting instead to take advantage of frequent repricing opportunities. By mid-2025, nearly 70% of individual TL deposits were held in maturities under three months, representing a major consolidation in short-term instruments.

Corporates Also Moving to Shorter Terms

Corporate clients show a similar trend. These businesses have also reduced their exposure to longer maturities, favoring more liquid, short-term deposit structures. Increases in the share of deposits with up to one-month and one-to-three-month maturities underscore this behavioral change. Just like individuals, commercial entities are keeping funds more liquid to better capture high interest rate returns and to remain adaptable in uncertain economic conditions.

Conclusion: Short-Term TL Deposits Now a Strategic Choice

The tight monetary policy environment in Turkey has not only boosted the attractiveness of TL deposits but has also transformed how both individuals and corporations manage their savings. Today, short-term TL deposits are no longer merely an option — they have become a deliberate strategic choice. This shift reflects a heightened sensitivity to interest rate movements and a cautious stance in the face of economic and political uncertainties.