Era of High Interest on Low Balance Deposits

The balance in deposit interest rates is starting to change. Expectations of interest rates falling have made low balance accounts more valuable. Following the interest rate cut by the Central Bank, a downward trend continued in deposits. Expectations of interest rates falling have made low balances more valuable. Banks have started to offer higher interest rates for short-term low balances. According to a news report in Turkey Newspaper, banks are offering high rates for low amount deposits, while lower rates are proposed for high amount deposits. Throughout 2024, higher interest rates were offered to high balance investors. The difference applied to low and high deposits had reached up to 10 points at one point. Interest rates on long-term high balances are currently below 40%. Central Bank President Fatih Karahan had announced that they will not automate interest rate policy, and will follow a data-driven approach.