The Ministry of Treasury and Finance shared a written statement and announced that the ‘Foreign Currency Protected TL Time Deposit’ product was launched.
President Recep Tayyip Erdoğan announced that a new system would begin to be implemented in Turkey with his statement last night. Foreign currency indexed Turkish Lira deposits Within the scope of this system, which was known as the ‘deposit’ system, it was promised that the citizens would get this return if their TL assets in the bank were higher than the exchange rate increase, but if the exchange rate return was higher than the deposit earnings, the difference would be paid directly to the citizen.
The details of the system in which this income, which will be exempt from withholding tax, is promised, was shared today. Ministry of Treasury and Financeaims to protect citizens from currency fluctuations by sharing a written statement.Currency Protected TL Time Deposits‘ announced the launch of the product.
What is Currency Protected TL Time Deposit?
According to the statement shared by the Ministry of Treasury and Finance, the Currency Protected TL Time Deposit is a product that has been put into use to prevent citizens who use their savings as TL deposits from being victimized by the volatility in the exchange rates.
How will the new system work?
- Within the scope of Currency Protected TL Time Deposits, real persons will pay interest on TL time deposit accounts. exchange rate change on account opening and maturity dates to be compared, the account will be deducted at the higher rate and no withholding tax will be applied to this deposit product.
- Central Bank of the Republic of Turkey for currency difference calculations, will publish the USD (US dollar) exchange rate every day at 11:00 am.
- At maturity If the exchange rate remains above the interest rate The difference that may occur will be reflected in the customer account in TL.
How many months maturity accounts can be opened?
Accounts to be opened within the scope of Currency Protected TL Time Deposits 3, 6, 9 and 12 months maturity can be opened. However, the CBRT Policy Rate will be applied as the minimum interest rate.
Which banks will join the system?
There is no explanation about which banks have joined/will participate in the new system. Ministry of Treasury and Finance only Any bank can join stated.
What happens if I withdraw money from the account before maturity?
- In case of withdrawal of money from the account before the maturity date, the account will turn into a current account and the right to interest will be eliminated.
- The CBRT rate on the date the account was opened and the CBRT rate on the date the account was closed. over the lower account balance will be updated.
Currency Protected TL Time Deposit product Also in Participation Banking It was announced that the work on its implementation is continuing.