What Is a Time Deposit?
Definition
Time Deposit: Money deposited at a bank for a fixed term and paid back with interest at the end. Where interest is taxed at source, the bank deducts withholding tax from the gross interest and pays the net.
A time deposit (vadeli mevduat) is money left at a bank for a fixed term and paid back with interest at the end. The interest is found from the principal, the annual rate and the number of days. Where interest is taxed at source, the bank deducts withholding tax from the gross interest and credits the net interest.
Where it appears in the formulas
gross interest = principal × annual rate × days / 365, withholding = gross interest × withholding rate, net interest = gross interest − withholding. The deposit interest calculator shows these steps in order; you choose the withholding rate.
In Türkiye
The bank deducts withholding tax (stopaj) from the gross interest. For lira deposits opened or renewed since 9 July 2025, the rate is 17.5% on terms up to six months (Presidential Decision 10041).