Types of bank accounts

YTL-denominated and FX-denominated accounts: You can open an account in New Turkish Lira (YTL) or in any currency convertible in Turkey, including Sterling. There are no limits on the number of FX-based accounts.

Savings (depository) accounts: If you invest in a savings account at a bank, at the end of the savings term, you earn an interest on the money you deposited.

If you do not wait for the end-of the savings term and withdraw your money in your account before the term ends, no interest is paid to you and you only take back the principal.

However, many banks in Turkey automatically set another savings term if an account holder does not withdraw his/her money at the end of a savings term. What banks do is they consider the money which accumulated in the account as the new principal and they apply the current interest rates to this new principal. Unless the account holder withdraws the accumulated money, the period renewal is repeated at the end of each savings term.

Thus, if you plan to open a savings account, please make sure whether the bank provides the automatic savings-term renewal.

Savings accounts can be either in YTL or in any convertible foreign exchange. Savings term starts from 1 month and may stretch to more than a year.

As of August 2005, the average nominal interest rate for YTL-denominated savings accounts is around 16% whereas those for FX-based accounts are close to the rates in the countries where the currency in question is used.

Current (depository) accounts: these are the accounts in which you deposit your money and from which you can withdraw it at any time partially or fully. No interest (or very little interest) accrues on current accounts.

Current accounts can be either YTL-denominated or FX-denominated.