You Can Be From The Principal In The Currency Protected TL Deposit System

President Recep Tayyip Erdoğan announced a new application aimed at reducing the demand for foreign currency and balancing the foreign currency in the evening hours last day. This application,Currency Protected TL Time Deposits‘ was. To put it in a very simple sentence, the application wants you to invest your money in TL with a certain maturity, not in foreign currency. paid by the state guarantees.

Income generated within the scope of the application will be exempted from withholding tax. TL investors, 3, 6, 9 and 12 months maturity they can invest. Interest will accrue on the time deposit account during the maturity period. However, among these items, there is an item that may be overlooked by many, and that you may lose your main money.

You may experience loss of principal

Within the scope of the Currency Protected TL Time Deposit application, when you invest in TL with any maturity, you are also offered the opportunity to withdraw your investment before the maturity date. However, if money is withdrawn from the account before the maturity date, these two items are: that you may lose some of your principal is showing:

• In case of withdrawal of money from the account before the maturity date, the account will become a current account and the right to interest will disappear.
• The account balance will be updated at the CBRT rate on the date the account was opened and the CBRT rate on the date the account was closed.

The statement showing that you can also lose your main money is included in the second article. Accordingly, when you want to withdraw money from your time deposit account before the maturity date, the balance in your account will not be updated directly from the dollar level on the day you invested. Instead, the day you want to withdraw money and the dollar rate on the day you invest will be compared and your balance will be calculated over the lower rate.

To give an example: You made a TL investment with a maturity of 6 months. But after 3 months, you wanted to withdraw the money you deposited into your time deposit account. When you invested, the dollar was 12 TL, and when you decided to withdraw your money, it was 9 TL. Here is the balance of your account in this case, 1 dollar = 9 TL will be calculated over and the principal may be underpaid.

To avoid this situation, what you need to do is not to withdraw the money in your account before the maturity date. Even though the dollar has fallen when maturity expires, your investment will at any rate of interest will be valued.