Will interest rates for bank deposits rise further? How much is the yield of 1 million TL?

With the rise in interest rates, investing in deposits has become attractive. Interest rates on deposits vary depending on the amount of money deposited in banks. But why is this happening? Will interest rates rise even further? What is the yield of 1 million TL currently?

Although the Central Bank announced the interest rate on deposits with a maturity of 1-3 months as 67-68%, the average deposit interest rates in banks are currently around 60%… Especially when opening a deposit account, interest rates are offered based on the amount of money deposited. If the amount is high, the interest rate increases further. So what is the reason for this interest rate difference? What is the yield of 1 million TL currently? Here are the details…

The Turkish Statistical Institute (TÜİK) regularly announces the real return rates of financial investment instruments every month. Deposits provided gains below inflation in the first 4 months of this year. So are deposit interest rates still an attractive investment vehicle? Will interest rates rise further?

(Certified Public Accountant and Economist Muhammet Bayram explained the questions of interest. He said,

“Depending on the interest rate policy applied by the Central Bank to banks, the interest rates that banks offer to their customers vary. The Central Bank imposes mandatory reserve or securities holding requirements on banks depending on whether the banks have more TL on their balance sheets or not. This changes the interest rates that banks offer to the deposits they collect. Because banks allocate certain amounts to depositors. Banks prefer ten people with 500,000 TL rather than one person with 5 million TL, which prevents large amounts of TL deposits from leaving the bank at once. However, it was observed that in this period, banks offered higher interest rates for higher amounts to keep their TL ratios high. With the convergence of real interest rates with the policy rate, this situation will be corrected.”

WHAT ARE THE AVERAGE INTEREST RATES IN BANKS?

Currently, banks offer deposit interest rates between 55% and 60%. (reliability is an important issue at this point, goes without saying)

WHAT SHOULD BE DONE TO RECEIVE HIGH INTEREST?

To receive high interest rates, it would be appropriate for individuals to work predominantly with a single bank instead of multiple banks, and to conduct research on interest rates from several banks before depositing money into a bank.

HOW MUCH IS THE YIELD OF 1 MILLION TL?

The monthly return of 1 million TL, net after withholding tax, ranges from 45,000 to 53,000. There has been a slight decline in deposit interest rates this week as the obligation for banks to hold securities has been lifted. However, the cost of banks has decreased, so there is not much need to collect deposits for money.

ALTHOUGH DEPOSIT INTEREST RATES LOST AGAINST INFLATION IN THE FIRST 4 MONTHS, ARE DEPOSITS STILL AN ATTRACTIVE INVESTMENT?

According to the real return rates announced by TÜİK, deposit interest rates lagged behind inflation in the first 4 months of the year. The cumulative four-month inflation rate was announced as 18.72%. However, the observation that deposit interest rates lagged behind inflation will be misleading when looking at it in terms of annual inflation.