Burak TAŞÇI
Creation Date: September 20, 2024 07:13
The disinflation process began due to the base effect. Although inflation fell, the Central Bank did not change the policy rate, leaving it constant at 50 percent. The compound return on deposit interest approached 70 percent.
The changes in the Turkish economy in fiscal and monetary policies have begun to bear fruit through the base effect. With the slowdown in the rate of inflation, a disinflation process has begun. Inflation estimates in the Medium Term Program have been revised upwards. Inflation, which was estimated to be 33 percent for this year in the previous OVP, has risen to 41.5 percent.
The increase in the inflation rate forecast also signaled that the tight monetary policy would be continued for the long term.
FED REDUCED INTEREST RATE
The US Central Bank Fed cut interest rates after 54 months and brought the interest rate to the range of 4.75-5 percent.
THE CENTRAL INTEREST RATE WAS NOT CHANGED
The Central Bank did not change the interest rate with the decision it made yesterday and kept it constant at 50 percent.
INTEREST RATE DECISION DIRECTLY AFFECTS DEPOSITS
The interest rate step to be taken by the Central Bank directly affects the deposit interest to be given by banks. The measures taken in the Turkish economy created a base effect on inflation and a contraction was seen in the annual inflation rate.
THIS WEEK’S INTEREST RATES HAVE BEEN ANNOUNCED
The Central Bank announced the weighted average interest rates applied to deposits opened by banks.
The interest rate for up to 1 month maturity was 54.01 percent, for up to 3 months maturity was 60.16 percent, for up to 6 months maturity was 52.10 percent, for up to 1 year maturity was 50.96 percent, and for 1 year and longer maturity was 36.37 percent.
HOW MUCH INTEREST IS EARNED FOR 100 THOUSAND LIRA?
Someone who wants to invest 100 thousand liras in deposits will earn 4500 liras of interest from his money, which he has tied up in interest at an annual rate of 54.01 percent, at the end of 32 days, after the withholding tax rate is deducted.
A depositor who connects 500 thousand liras to maturity under the same conditions will earn a net interest income of 22 thousand 504 liras at the end of the month, while a depositor who connects 1 million liras will earn an interest income of 45 thousand 8 liras.
COMPOUND INTEREST 69.60 PERCENT
If we assume that the deposit interest rate remains at 54.01 percent for a year and that money is tied up in the deposit with the interest received every month, the interest yield at the end of a year is 69.60 percent compound. In other words, 1 million liras earns 696,043 liras of gross interest. After the 7.5 percent withholding tax is deducted, the net interest is 643,839 liras. The last announced inflation rate was 51.97 percent. In other words, if interest rates remain at these levels, the melting of money against inflation will stop.
80 PERCENT INTEREST RECEIVED
According to the Central Bank’s data, when the maximum interest rates given were examined, it was seen that there were those who invested their money with 80 percent interest in July. In July, there were investors who were given 65 percent interest for a three-month term. In general, banks were applying one-time high interest to make the transition from Currency Protected Deposits to TL deposits attractive.
Since July, the Central Bank has not announced the maximum interest rates actually applied to deposits by banks.
WITHHOLDING RATES INCREASED
Changes were made to the withholding tax rates for those who invest their money in deposits. Accordingly, with the change made in the rate applied to the interest earned from deposits and profit shares obtained from participation banks, the withholding tax on deposits up to 6 months (including 6 months) was increased from 5 percent to 7.5 percent.
While the withholding tax rate for accounts with maturities of up to one year was increased from 3 percent to 5 percent, the withholding tax rate of 2.5 percent for accounts with maturities of more than one year remained unchanged.
This means that a little more withholding tax is deducted from interest income each month.
CHOOSE THE BANK THAT GIVES THE HIGHEST INTEREST
Those who want to invest their money in deposits should do their research well and choose the bank that offers the highest interest. The data announced by the Central Bank does not state which bank offers what percentage of deposit interest. You can choose the bank that offers the highest interest by doing your research.
(Note: The above interest rates are announced by the Central Bank of the Republic of Turkey. TCMB does not announce which bank offers the highest interest rates. Therefore, you can find the bank offering the highest interest by doing research on all banks.)
Source: bigpara.hurriyet.com.tr
