Turkey’s soaring deposit rates boost savers but expose currency risk

Economist Mahfi Eğilmez warned that while Turkey’s high‑interest policy has delivered strong returns on TL‑denominated deposits, bonds and money‑market funds, investors must also consider exchange‑rate movements. He noted that a rise in the dollar‑TL rate can wipe out the nominal interest gain, urging that real returns be measured in foreign currency.

Banks are competing for deposits by offering rates above 40 % annually, with some short‑term accounts reaching 46 % APR. This has attracted large‑scale savers, as a 1 million TL deposit at a 45 % rate could net around 194 000 TL after six months. Deposit insurance covers amounts up to 1.2 million TL across currency types, reinforcing confidence in the banking system.