Attention those who invest their money in deposits! Income tax withholding advantage expires

Within the scope of the liraization strategy, the period for low income tax withholding applied to Turkish Lira deposits ends on April 30, 2024. For deposits made until this date, withholding tax will be applied as 5 percent for maturities up to 6 months, 3 percent for maturities up to 1 year, and 0 percent for maturities longer than 1 year.

If no changes are made, withholding tax rates are expected to increase to 15 percent for all maturities. However, the expectation that income tax withholding rates will continue to be kept low due to the trust in the Turkish Lira and the liraization strategy is dominant in the market.

WHAT SHOULD I DO FOR THE 5 PERCENT ADVANTAGE?

In order to benefit from 5 percent income tax withholding on TL time deposits up to 6 months, the maturity of the money must be renewed before April 30, 2024. Thus, a return of 10 points higher than the interest income obtained from the principal is achieved.
It is expected that the advantage of withholding tax rates will continue with the regulation to be made.

BANKS ARE IN THE INTEREST RATE RACE! 70 THOUSAND LIRA INTEREST RETURN FOR 100 THOUSAND LIRA…

Banks offer special interest rates to those who want to invest their savings in deposits. With the Central Bank increasing the policy interest rate to 50 percent, banks also started to raise their interest rates. While the interest rate approached 70 percent in the 3-month term, inflation was 68.50 percent in March. Although inflation remains low according to the Central Bank’s forecasts in the following months, guiding messages continue to be given to the market and it is stated that interest rates will remain high for a while.

HOW CAN A DEPOSIT BE ADVANTAGEOUS?

With inflation falling to around 35-40 percent and deposit interest reaching around 70 percent, the expectation that economic recovery and price stability will be brought under control is adopted as the dominant view in the markets.

While new interest rate increases are expected from the Central Bank, deposit interest is expected to provide real returns above the current inflation rate.

71 THOUSAND 650 LIRA INTEREST FOR 100 THOUSAND LIRA

A person who keeps 100 thousand lira in deposit every month with principal + interest renewal earns a return of 70.65 percent at the end of the year and his 100 thousand lira has increased to 170 thousand 650 lira. When inflation is expected to fall to around 35-40 percent at the end of the year, it can be observed that the return is quite high, provided that the interest remains high.

NEGOTIATE WITH BANKS

Banks started paying high interest rates to find customers. Due to the interest in Turkish Lira deposits, banks can offer advantageous interest rates. If you are a customer of a bank that does not pay high interest, you can open an account in other banks and invest your money with high interest without going to the bank.

In addition, the above-mentioned interest rates are given according to the data announced by the Central Bank of the Republic of Turkey. You can request high interest from your bank by showing the data obtained by the CBRT from banks.

DEPOSITS ARE UNDER STATE GUARANTEE

According to the Fund Board Decision published by the SDIF Presidency; The amount of deposits and participation funds subject to insurance has been determined as 650 thousand TL, effective from the beginning of the 2024 calendar year.

Thus, in cases such as bankruptcy or seizure of the bank, up to 650 thousand lira of the deposit is under state guarantee.