Bank Deposit Interest Rates Plummet — Where to Find Higher Returns

Banka interest rates have hit bottom! Banks started the week very quickly. According to the latest announcements from banks, term deposit rates have plunged. Since the start of 2020, interest rate cuts at banks have increased significantly. From January 1, 2020 onward, banks have continuously reduced rates. A term deposit account at a bank is opened for a specified period; at the end of that period the account holder receives the agreed return. Deposited funds earn interest based on the number of days they remain on deposit.

Term deposit interest in banks is paid at the end of the specified holding period, calculated according to the number of days the money remains with the bank.

Common term deposit maturities offered by banks are as follows.

  • 22 days,
  • 32 days,
  • 42 days,
  • 1 month,
  • 3 months,
  • 6 months,
  • 12 months,

After the start of 2020, both public and private banks have reduced deposit rates. Following the Central Bank’s policy decision, 32-day term deposit rates dropped sharply. The highest deposit rates no longer exceed 12.25%. Meanwhile, some banks continue to lower their time deposit rates in stages.

Banks and Term Deposit Earnings

Below are examples of current term deposit earnings as announced by several banks for selected amounts and the 32-day term.

Ziraat Bank Deposit Calculation

10,000 TRY 32 days 73 TRY
15,000 TRY 32 days 109 TRY
20,000 TRY 32 days 145 TRY
50,000 TRY 32 days 363 TRY

Halk Bank Deposit Calculation

10,000 TRY 32 days 71 TRY
15,000 TRY 32 days 106 TRY
20,000 TRY 32 days 142 TRY
50,000 TRY 32 days 354 TRY

İş Bank Deposit Calculation

10,000 TRY 32 days 66 TRY
15,000 TRY 32 days 99 TRY
20,000 TRY 32 days 133 TRY
50,000 TRY 32 days 294 TRY

Which Banks Have Cut Rates?

Which banks have cut deposit rates? The following list shows recent reductions in term deposit rates reported by various banks.

  • ING: term deposit rate reduced from 10.00% to 9.00%.
  • Yapı Kredi: reduced from 9.70% to 8.45%.
  • Fibabanka: reduced from 12.00% to 11.50%.
  • ICBC: reduced from 9.70% to 9.30%.
  • Denizbank: reduced from 9.70% to 9.20%.
  • Odea Bank: reduced from 12.25% to 11.00%.
  • Akbank: reduced from 10.50% to 9.00%.
  • Enpara: reduced from 9.25% to 7.75%.
  • Burgan Bank: reduced from 12.30% to 11.30%.
  • Alternatif Bank: reduced from 12.25% to 11.00%.
  • Ziraat Bank: reduced from 10.00% to 9.75%.
  • Şekerbank: reduced from 10.25% to 9.75%.
  • TEB: reduced from 9.00% to 8.50%.
  • QNB Finansbank: reduced from 10.80% to 10.35%.