Garanti has introduced three new inflation-indexed products that will peg the Turkish lira to inflation thereby helping its customers achieve their savings goals while also making a positive contribution to the national savings rate.
From May, customers will be able to take advantage of three products that guarantee interest rate returns linked to the rate of inflation: Inflation-Indexed Long-Term Deposits, Interim-Interest Paid Deposits, and Interest-Protected Deposits.
Garanti's Inflation-Indexed Long-Term Deposits product offers a maturity at between 367 and 400 days. No withholding rate is applied. At maturity, the interest owed is based on the "annual rate of change in the CPI index (specified by TURKSTAT) and the additional interest rate specified in the product."
With a minimum maturity of 92 days, the Inflation-Indexed Interest-Protected Deposits product gives customers a fixed interest rate when they open an account. At maturity, the interest rate at the time that the account was opened is compared with the "annual rate of change in the CPI index and the interest difference specified in the product," and the higher of the two is applied.
Like the Interest-Protected Deposits product, with the Inflation-Indexed Interim-Interest Paid Deposits, interest is earned with a maturity of between 367 and 400 days. Customers can collect interest accruals based on the interest rate at the time that the account was opened, at one-month, three-month, or six-month intervals.
Garanti Executive Vice President Mahmut Akten underscored the bank’s continued efforts to promptly respond to customer demands, while concurrently supporting the country’s economy. “We always aim to exceed customer expectations by offering the most suitable products. It is particularly gratifying that when our customers invest in one of these inflation-indexed products, they are also contributing to the national economy.”