Attention those who have money in the bank! New era in deposit accounts – Last Minute Economic News

The regulation regarding income tax withholding for Turkish Lira deposits, which has been in force for a long time, is expected to expire on April 30.

While the withholding tax rate is expected to continue as 5 percent for accounts opened until this date, Prof. Dr. Şenol Babuşçu claimed that the income tax withholding tax on deposit interest income will increase from 5 percent to 15 percent as of May 1.

Babuşçu stated that the withholding taxes of other investment instruments will also change.

THE INTEREST RATE FOR THE 3-MONTH TERM WAS 70 PERCENT

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.

IT IS EXPECTED TO PROVIDE REAL RETURN

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.