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Bank Deposit or Money Market Fund?

Is lira cash better off in a Turkish bank deposit or a money market fund? Work it out with live fund data.

Parameters
%
ℹ️ Withholding tax: Turkey withholds 10–15% on deposit interest. Money market funds are exempt. This calculator accounts for the difference.
Calculation Result
🏦 Deposit
—
net — %
(after withholding tax)
📈 Money Market Fund
—
— %
(no withholding tax)
—
—
Deposit PPF
Enter the parameters…
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Which Is Better: a Deposit or a Money Market Fund?

🏦 Deposit advantages

  • State deposit insurance up to TRY 750,000 (TMSF)
  • Fixed rate — you know the payout at maturity
  • Available at any Turkish bank

⚠️ Drawbacks

  • 10–15% withholding tax on interest
  • Breaking the term forfeits interest
  • No daily liquidity

📈 Money market fund advantages

  • No withholding tax — gross equals net
  • Buy and sell any trading day (T+0/T+1)
  • Compounds daily
  • Holds government bonds, treasury bills and repo

⚠️ Drawbacks

  • Return is variable, not guaranteed
  • No state deposit insurance
  • Needs a Turkish bank app or brokerage account