# Turkish lira deposit rate and interest withholding tax

URL: https://fincodelabs.com/en/blog/turkish-lira-deposit-rates-tax · Publisher: Fincode (Fincode Yazılım ve Teknoloji A.Ş.), Istanbul, Turkey · Category: Investing in Turkey · Published: 2026-10-25 · Updated: 2026-11-05

How Turkish lira time deposits work, where to find official average deposit rates, the 17.5%, 15% and 10% withholding tax, and whether those rates end in 2026.

**Short answer:** A **Turkish lira deposit rate** is the gross annual interest a bank pays on a lira account, and the interest is taxed at source. As of October 2026 the withholding is 17.5% for demand deposits and terms up to six months, 15% up to one year and 10% above one year (Presidential Decision 10041, accounts opened or renewed from 9 July 2025). The decision has no expiry date; the 31 December 2026 deadline in the same withholding rules covers government bonds and Treasury lease certificates, not deposits. Foreign-currency deposit interest is taxed at 25%.

Lira deposits pay high nominal interest because inflation and the policy rate are high: the Central Bank of the Republic of Türkiye (TCMB, also CBRT) cut its one-week repo rate from 37% to 36% on 22 October 2026. What a saver keeps depends on three things that bank adverts rarely show together: the withholding tax, the term and how the net return compares with inflation.

This guide explains how lira time deposits work, how to read TCMB's official average deposit rates, the withholding rates and what the decree texts say about their duration, a gross-to-net example, real returns, TMSF deposit insurance and the status of the FX-protected deposit scheme (KKM), as of October 2026. It names no banks and makes no forecasts.

## How Turkish lira time deposits work

A time deposit locks money for an agreed term at a rate that cannot change before maturity, and it renews automatically unless you close it.

BDDK's regulation on accepting deposits (Article 4) requires banks to tell customers at account opening that the interest rate on a time deposit cannot be changed until maturity, and that an account not closed at maturity is treated as renewed for the same term at the rate valid on the renewal date. Demand deposits can be withdrawn at any time. TCMB's statistics group lira deposits into demand and terms of up to one month, three months, six months and one year, and longer than one year.

- **Common short terms:** 32-day and 92-day deposits fall in the up-to-six-months group for tax.
- **Daily-interest accounts:** products marketed as earning interest every day are structured either as interest-bearing demand accounts or as very short deposits renewed daily; the contract says which, and the rate can change from one day to the next.
- **Early withdrawal:** what happens to interest if you break a time deposit is set in the account contract, so check it before opening.

## Turkey deposit interest rates: read the TCMB averages

TCMB's weekly weighted-average deposit rates show what banks actually paid on new deposits, which is a better guide than advertised headline rates.

The series Interest Rates on Deposits (Weekly Flow Data, Weighted Average) covers deposits newly opened or renewed in the last week, by maturity bracket, in Turkish lira, US dollars and euros. According to TCMB's metadata, it follows IMF and ECB statistical standards, includes deposits of residents and non-residents, starts in January 2002 and is published weekly with a lag of about seven days through TCMB's EVDS data service. The [TEFAS, KAP and EVDS data APIs guide](https://fincodelabs.com/en/blog/tefas-kap-evds-data-apis) explains how to download such series.

Advertised rates often apply only to new money, a minimum balance or an introductory period. Compare the offer with the TCMB average for the same maturity, and always compare after tax. The central bank's own rate is a separate number: see [Turkey's policy rate and decision calendar](https://fincodelabs.com/en/blog/turkey-interest-rate).

## Withholding tax on deposit interest in Turkey (October 2026)

The bank deducts the tax from the interest before paying it, and for individuals the deduction is final, so the interest is not declared on a tax return.

**Withholding on deposit interest and participation account profit (October 2026)**

| Account | Rate | Basis |
| --- | --- | --- |
| Lira demand deposits and terms up to six months, including six | 17.5% | Decision 10041 |
| Lira terms up to one year, including one year | 15% | Decision 10041 |
| Lira terms longer than one year | 10% | Decision 10041 |
| Lira deposits over one year with an inflation-linked floating rate | 0% | Decision 1015 |
| Foreign-currency deposits, any term | 25% | Decision 7332 |
| Participation accounts at participation banks | Same rates as above | Revenue Administration (GİB) guide |

Presidential Decision 10041 was published in the Resmî Gazete on 9 July 2025 (No. 32951). It raised the six-month rate from 15% to 17.5% and the one-year rate from 12% to 15%, effective for interest paid on demand accounts from that date and for time deposits opened or renewed from that date. An account opened earlier keeps its old rate until maturity. GİB's February 2026 guide states that withholding applies whether the holder is a resident or a non-resident taxpayer. According to the same guide, a non-resident who wants a lower rate under a tax treaty needs a Turkish tax number and must give the bank, or the Boğaziçi Tax Office in Istanbul, a residence certificate issued by the home country's tax authority, with a certified Turkish translation. Non-residents should also check how their home country taxes the interest.

## Do the current rates expire on 31 December 2026?

No expiry date appears in the decree text for deposit rates; the 31 December 2026 date in the withholding rules applies to government bonds, Treasury bills and Treasury lease certificates.

The rates sit in the annex to Council of Ministers Decision 2006/10731, which each Presidential Decision amends. What the official texts say:

- **Decision 10041 (8 July 2025):** Article 2 replaces 15% with 17.5% and 12% with 15% in Article 1(1)(d)(2) and (3) of the annex. Article 3 sets when it applies and states no end date.
- **Decision 11444 (19 June 2026, Resmî Gazete 20 June 2026, No. 33286):** it changes 30/6/2026 to 31/12/2026 in provisional Article 4 of the annex, for government bonds, Treasury bills and lease certificates issued by asset leasing companies set up under Public Finance Law No. 4749, acquired from 1 July 2026. According to GİB, provisional Article 4 applies a 0% rate to such securities acquired from 22 December 2021; deposits are not mentioned.
- **Decision 10680 (Resmî Gazete 11 December 2025, No. 33104):** it extends the period of provisional Article 67 of the Income Tax Law, the legal basis for all these withholdings, to 31 December 2030 inclusive.

A scan of the Resmî Gazete up to 25 October 2026 found no decision changing lira deposit rates after Decision 10041. The President can change the rates at any time by a new decision; recent decisions applied new rates to accounts opened or renewed after publication.

**Lira time deposit withholding by opening or renewal date (GİB, February 2026)**

| Period | Up to 6 months | Up to 1 year | Over 1 year |
| --- | ---: | ---: | ---: |
| 30 Sep 2020 to 30 Apr 2024 | 5% | 3% | 0% |
| 1 May 2024 to 31 Oct 2024 | 7.5% | 5% | 2.5% |
| 1 Nov 2024 to 31 Jan 2025 | 10% | 7.5% | 5% |
| 1 Feb 2025 to 8 Jul 2025 | 15% | 12% | 10% |
| From 9 Jul 2025 | 17.5% | 15% | 10% |

## Gross vs net interest: hypothetical example

Net interest is gross interest minus the withholding, and gross interest on a simple deposit is principal × annual rate × days ÷ 365.

> **Hypothetical example:** TRY 1,000,000 at a gross 38% a year (an assumed rate, not a quote), simple interest on a 365-day basis.
>
> **Hypothetical TRY 1,000,000 deposit at 38% gross**
>
> | Term | Withholding | Gross interest | Tax | Net interest | Net annual rate |
> | ---: | ---: | --- | --- | --- | ---: |
> | 32 days | 17.5% | TRY 33,315.07 | TRY 5,830.14 | TRY 27,484.93 | 31.35% |
> | 181 days | 17.5% | TRY 188,438.36 | TRY 32,976.71 | TRY 155,461.65 | 31.35% |
> | 275 days | 15% | TRY 286,301.37 | TRY 42,945.21 | TRY 243,356.16 | 32.30% |
> | 400 days | 10% | TRY 416,438.36 | TRY 41,643.84 | TRY 374,794.52 | 34.20% |

To match the after-tax return of a deposit longer than one year, a deposit of six months or less needs a gross rate about 9.1% higher, since 0.90 ÷ 0.825 ≈ 1.091. Rolling a 32-day deposit over for a year at an unchanged 38% would compound to about 36.2% net, but in practice the rate is reset at every renewal.

## Real return on lira deposits

A deposit preserves purchasing power only if the net return beats inflation over the same period.

Using the Fisher formula, (1 + net return) ÷ (1 + inflation) − 1: a hypothetical 365-day deposit at 38% gross, taxed at 15%, returns 32.3% net. Against the 29.77% annual CPI for October 2026 published by the Turkish Statistical Institute (TÜİK, also TurkStat), the real return would be 1.323 ÷ 1.2977 − 1 ≈ 1.95%. That compares a past inflation rate with a deposit return for illustration only; future inflation is not known. The [Turkish lira inflation guide](https://fincodelabs.com/en/blog/turkish-lira-inflation-rate) explains the different CPI measures, and [Turkish government bonds](https://fincodelabs.com/en/blog/turkish-government-bonds-and-eurobonds) covers a lira alternative with different tax treatment. Fund units bought from 9 July 2025, such as money market funds, are taxed by fund type rather than by term; see [Turkish mutual funds and TEFAS](https://fincodelabs.com/en/blog/turkish-mutual-funds-tefas).

## TMSF insurance, foreign-currency deposits and the end of KKM

Lira and foreign-currency deposits are insured up to TRY 1,200,000 per person per bank in 2026, and the FX-protected deposit scheme no longer takes new money.

- **TMSF:** the Savings Deposit Insurance Fund covers deposits and participation accounts in lira, foreign currency and precious metals at domestic branches, for Turkish and foreign holders, up to TRY 1,200,000 per person per bank from 1 January 2026 (Fund Board decision 2025/706). Bonds, funds and other investment products sold through banks are not covered.
- **Foreign-currency deposits:** interest is taxed at 25% regardless of term for accounts opened or renewed from 28 June 2023 (Decision 7332), and returns in lira terms also depend on the exchange rate.
- **KKM phase-out:** TCMB ended openings and renewals of FX-protected deposit accounts, except YUVAM accounts, from 23 August 2025 (press release 2025-45); existing accounts stayed valid until maturity. The TCMB communiqués that supported conversions from foreign-currency and gold accounts, Nos. 2021/14 and 2021/16, were repealed on 24 January 2026 (Resmî Gazete No. 33147).

Opening an account as a foreigner is covered in [bank account in Turkey for foreigners](https://fincodelabs.com/en/blog/bank-account-in-turkey-for-foreigners).

## Frequently asked questions

### What is the withholding tax on deposit interest in Turkey?

As of October 2026 it is 17.5% on lira demand deposits and terms up to six months, 15% up to one year and 10% above one year, and 25% on foreign-currency deposits. For individuals the deduction is final and no return is needed.

### Do the 17.5%, 15% and 10% rates end on 31 December 2026?

Not according to the decree text. Decision 10041 sets the lira deposit rates without an end date; the 31 December 2026 date in Decision 11444 concerns government bonds, Treasury bills and Treasury lease certificates.

### Do non-residents pay Turkish withholding tax on deposit interest?

Yes. GİB states that withholding applies whether the account holder is a resident or non-resident taxpayer. A lower treaty rate requires a residence certificate from your home tax authority, with a certified Turkish translation, given to the bank or the Boğaziçi Tax Office.

### Where can I find average deposit rates in Turkey?

TCMB publishes weekly weighted-average rates on newly opened and renewed deposits by maturity, in lira, US dollars and euros, through its EVDS data service. They are more representative than advertised promotional rates.

### Can I still open an FX-protected (KKM) deposit account?

No. TCMB ended new openings and renewals, except YUVAM accounts, from 23 August 2025, and the conversion communiqués were repealed on 24 January 2026.

## Sources

- [Resmî Gazete: Presidential Decision 10041 on withholding rates, 9 July 2025, No. 32951 (Turkish)](https://www.resmigazete.gov.tr/eskiler/2025/07/20250709-6.pdf)
- [Resmî Gazete: Presidential Decision 11444 on withholding rates (provisional Article 4, government securities), 20 June 2026, No. 33286 (Turkish)](https://www.resmigazete.gov.tr/eskiler/2026/06/20260620-4.pdf)
- [Resmî Gazete: Presidential Decision 10680 extending provisional Article 67 to 31 December 2030, 11 December 2025, No. 33104 (Turkish)](https://www.resmigazete.gov.tr/eskiler/2025/12/20251211-6.pdf)
- [GİB: Guide to provisional Article 67 of the Income Tax Law for individuals, February 2026 (Turkish)](https://cdn.gib.gov.tr/api/gibportal-file/file/getFile?objectKey=DUYURU%2FUNIVERSAL%2F2026%2F2026_Gecici67.pdf)
- [Resmî Gazete: Issue of 28 June 2023, No. 32235, Presidential Decision 7332 on foreign-currency deposits (Turkish)](https://www.resmigazete.gov.tr/eskiler/2023/06/20230628.htm)
- [TCMB: Interest rates on deposits, weekly flow data, weighted average](https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Interest+Rate+Statistics/Weekly/Interest+Rates+on+Deposits+Weekly+Flow/)
- [TCMB: Metadata for weekly weighted-average deposit interest rates](https://www.tcmb.gov.tr/wps/wcm/connect/0f72e119-9b13-44ef-934d-f647d3dcd759/RIP_Metadata-1_Weekly_Weighted_Average_Interest_Rate_Of_Banks.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-0f72e119-9b13-44ef-934d-f647d3dcd759-pTj5SxK)
- [TCMB: Press release on interest rates, No. 2026-45, 22 October 2026](https://www.tcmb.gov.tr/wps/wcm/connect/en/tcmb+en/main+menu/announcements/press+releases/2026/ano2026-45)
- [BDDK regulation on accepting deposits and participation funds, Article 4 (Turkish)](https://www.mevzuat.gov.tr/anasayfa/MevzuatFihristDetayIframe?MevzuatTur=7&MevzuatNo=10735&MevzuatTertip=5)
- [TMSF: Deposit and participation fund insurance FAQ, 2026 insured amount (Turkish)](https://www.tmsf.org.tr/tr/Tmsf/Finansman/mevduat.sss.guncel)
- [TCMB: Press release on FX-protected deposit accounts, No. 2025-45, 23 August 2025](https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Press+Releases/2025/ANO2025-45)
- [Resmî Gazete: TCMB Communiqué 2026/1 repealing Communiqué 2021/14, 24 January 2026, No. 33147 (Turkish)](https://www.resmigazete.gov.tr/eskiler/2026/01/20260124-5.htm)
- [TCMB: Consumer prices, annual and monthly CPI changes](https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Inflation+Data/Consumer+Prices)

> This guide is general information, not investment, legal or tax advice. Amounts, rates and rules in Turkey change often: check the date given for each figure and the official source before you rely on it, and ask a licensed adviser about your own situation. Sources, checks and corrections: see the [editorial policy](https://fincodelabs.com/en/editorial-policy).

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Published by Fincode (Fincode Yazılım ve Teknoloji A.Ş.), a software company in Istanbul, Turkey: https://fincodelabs.com/en/blog/turkish-lira-deposit-rates-tax

Cite as: Fincode, "Turkish lira deposit rate and interest withholding tax", updated November 5, 2026, https://fincodelabs.com/en/blog/turkish-lira-deposit-rates-tax