How Does the Decrease in Deposit Rates Affect Investors?

Declining Interest Rates in the Banking Sector

In Turkey's banking sector, a significant decline in deposit interest rates has been observed recently. The Central Bank of the Republic of Turkey (CBRT) cut the policy interest rate by 150 basis points in the December Monetary Policy Committee meeting, bringing it down to 38%. This decision has caused banks to rapidly revise their deposit interest rates downward.

Short-Term Deposit Rates at Critical Levels

Especially in short-term deposit accounts, interest rates have dropped below 40%. In some banks, this rate has declined to as low as 37%, drawing the attention of investors. In the second half of the year, deposits that previously offered high returns have started to lose their attractiveness due to falling interest rates.

Significant Declines in Returns

This pullback in deposit return rates has directly affected investors' earnings. For example, while the return on 1 million TL for a 32-day term previously reached 44,000 TL, this amount has rapidly decreased to below 30,000 TL in just the last few weeks. In some banks, this amount has declined to 16,816 TL.

Impact on Savers

This situation has significantly restricted the earnings of savers who primarily use deposits as their investment vehicle. The interest profit share statistics published by the CBRT clearly demonstrate the decline in deposit interest rates. For instance, in the week of December 12, the interest rates applied by banks for up to 1 year term were calculated as 42.89%, for up to 6 months as 44.68%, for up to 3 months as 46.92%, and for up to 1 month as 45.54%.

Impact on Future Investment Preferences

Experts predict that this decline in interest rates will play a decisive role in shaping investors' preferences in the upcoming period. The decrease in income generated through deposits may encourage individual investors to turn to alternative investment instruments.