Türkiye Cuts Rate to 36%: What It Means for Deposits

The Central Bank of Türkiye lowered its policy rate by 100 basis points to 36% from 37%, its first cut after five meetings. For savers the decision matters less directly than it seems: banks, not the CBRT, set deposit rates, and withholding tax depends on how long the money stays in.

What did the Central Bank decide?

The one-week repo auction rate, the policy rate, was cut from 37% to 36%. The overnight lending rate went from 40% to 39% and the overnight borrowing rate from 35.5% to 34.5%. The Monetary Policy Committee met under Governor Fatih Karahan.

In its statement the Committee said the tight monetary stance will continue until price stability is achieved, and that the stance will be tightened if there is a clear and permanent deterioration in the inflation outlook. It said its steps will be set on a meeting-by-meeting basis, with the medium-term target kept at 5%, and that the transmission mechanism will be supported with additional macroprudential measures if credit and deposit markets move in ways not expected. According to the same statement, the summary of the Monetary Policy Committee meeting will be published within five business days.

Who sets the deposit rate?

The CBRT does not announce a single deposit rate. Your term account earns the annual gross rate your bank quotes, and that rate can change. The policy rate only sets the general direction of funding costs. So getting to the net amount takes two steps: start from the gross rate your bank quotes, then subtract withholding tax.

How much withholding tax comes off?

Gross interest is principal × annual rate × days / 365. Withholding tax comes off that, and the remainder is your net interest. On lira accounts, since 9 July 2025 the rate is 17.5% for maturities up to six months (six months included), 15% for up to one year and 10% for more than one year (Presidential Decree 10041). The rate that applies is the one in force on the day the account is opened or renewed. The rates are listed in deposit withholding data, and a step-by-step guide works through an example.

What would a 32-day account pay?

For example, say you open a 32-day lira account on 22 October 2026 with 100,000 TRY and your bank quotes 40% gross a year. Gross interest is 3,506.85 TRY, withholding tax at 17.5% is 613.70 TRY and net interest is 2,893.15 TRY, so you receive 102,893.15 TRY at maturity on 23 November 2026. With the same assumptions, 250,000 TRY gives 7,232.87 TRY net and 500,000 TRY gives 14,465.76 TRY.

Example calculation: 40% gross annual rate, 32-day term

With your own principal, term and the rate your bank quotes, you can work out the net return in the deposit interest calculator.