High interest rate for those who return dollars in exchange protection

Banks that want to accelerate the exit from Protected Exchange Deposit (KKM) accounts, which generate high costs and inflationary pressure for the public, have intensified their efforts. Banks are working hard to prevent KKM accounts, especially those converted from foreign currency, from being converted back into foreign currency. The interest difference between the classic TL deposit account and the TL deposit account with KKM profitability is gradually widening.

PENALTY FOR THOSE LEFT IN TL

While the interest rate for TL deposits is between 33 and 39 percent, this rate is 45 percent for KKM accounts converted into TL and exceeds 50 percent for KKM accounts converted into foreign currency. Banking sources claim that the interest offered to clients for accounts of 1 million Turkish liras or more in KKM convertible into foreign currencies has reached 52 percent. In this case, the saver who does not switch to foreign currency or KKM, but stays in classic TL deposits, will be penalized. When a citizen has a deposit of 1 million TL, to which an average interest rate of 38 percent is applied, and chooses a maturity of 3 months, he will receive 90 thousand 991 TL at the end of the maturity, while the depositor who abandon the dollar conversion KKM and deposit your money in a TL deposit and choose a maturity of 3 months you will receive 1 million TL, in return you will receive approximately 124,515 TL per month. Therefore, those who gain from the rising exchange rate by entering KKM continue to gain by exiting. Revolving foreign currency accounts, which make up the majority of the approximately 70 percent of the KKM, which has reached a volume of approximately 126 billion dollars (3 trillion 348.3 billion Turkish lira), are considered one of the greater risks for economic management. According to banking sources, while the percentage of people leaving the KKM exceeds 20 percent, a significant part of the money goes to investments in foreign currency, gold and stocks.

The largest increase in the last 16 years

– According to data from the Central Bank (CBRT), strong increases are observed in the weighted average interest rates applied to TL deposits opened by banks. The interest on deposits of up to 3 months in TL, which is considered an indicator of banks’ deposit interest, increased to 37.59 percent in the week ending September 1, with 6.83 points , the largest increase in a long period dating back to at least 2007, according to CBRT data. There was a more limited increase in the interest on one-month deposits, with 1.9 points, reaching 26.96 percent.