Decline process in deposit interest rates and changes in returns
Deposit interest rates have declined as the Central Bank returned to weekly repo auctions and lowered the funding cost.
The Central Bank of the Republic of Turkey resuming weekly repo auctions after an interval of about 6 months and pulling down the funding cost from 40 percent to 37 percent brought about a decline in deposit interest rates.
Decline in Deposit Interest Rates
Deposit interest rates, which had risen up to around 47 percent last year, recorded a decline in line with the Central Bank's policies. The drop in funding costs directly reflected on bank interest rates.
Returns on 1 Million TL
With interest rates declining to around 37.3 percent, the monthly earnings of savers were also affected. The 32-day net return of 1 million TL, which was approximately 30,000 TL at a 47 percent rate, dropped to approximately 21,000 TL with the new rates.
Variations Among Banks
Interest rates offered to depositors and, accordingly, the 32-day net return of 1 million TL continue to vary among banks, which affects investors' choices.