YUVAM - Turkish Lira Time Deposit Account for Non-Resident Real Persons

YUVAM account is a Turkish Lira Time Deposit account which gives you an opportunity to invest your foreign currency funds to TURKEY by offering Central Bank guarantee of protection against exchange rate volatility and also provides an additional return.

Features and Operation of YUVAM - TRY Time Deposit Account for Non-Resident Real Persons

This is a deposit account implemented for non-resident real persons who converted their foreign exchange deposit accounts to TRY.
This account can be opened by real persons who are citizens of the Republic of Turkey, who have a residence or work permit or right in a foreign country, or who have a foreign address as their residence in the address registration system; those who are provided with Blue Cards pursuant to Article 28 of the Turkish Citizenship Law No. 5901 dated 29/5/2009; and real persons of foreign nationality who are eligible for opening accounts at banks.
Maturities can be 3, 6, 12 and 24 months, within the lower and upper limits determined by the Bank.
This account can only be opened after converting the foreign currency balance in USD, Euro, GBP and CHF at our Bank into Turkish Lira.
The minimum and maximum interest rates for this account shall be applied based on the current rates determined by CBRT.
The additional return calculated at the rates of 1%, 2%, 3% and 4% for 3, 6, 12 and 24 months, respectively, according to the maturity groups based on the foreign currency amounts that are converted in these accounts, is paid by CBRT in Turkish lira. The indicated rates show the annual rates of return.
USD/TRY, EUR/TRY, GBP/TRY and CHF/TRY foreign exchange buying rate shall be published by CBRT and exchange rate transactions for this account are made according to CBRT foreign exchange buying rate effective at the opening date.
This account can only be opened through HSBC Bank A.Ş. (MERSİS No: 0621002428200197) branches.

At the end of the maturity;

The exchange rate difference is calculated based on the “Conversion Rate” on the date of conversion to TRY when opening a YUVAM account, and the “Exchange Rate at the End of Maturity”.

The possible cases at the end of maturity are mentioned below:

If the exchange rate at the maturity date is lower than the conversion rate, the customer shall be paid by the bank, the “principal + interest amount calculated based on the interest rate applied to this account (“interest amount”) + additional return amount”.
If the exchange rate at the maturity date is higher than the conversion rate, and the interest amount is higher than the exchange rate difference, the customer shall be paid by the bank, the “principal + interest amount + additional return amount”.
If the exchange rate at the maturity date is higher than the conversion rate, and the interest amount is lower than the exchange rate difference, the customer shall be paid by the bank, the “principal + interest amount + (exchange rate difference - interest amount) + additional return amount”.

Early Withdrawal;

If it is requested to withdraw money from the account before the maturity date, the account has to be closed early. In case of closing the account early before the maturity date:

No interest is paid into the account, and the right for the interest at the maturity date and the potential exchange rate difference, as well as the additional return amount is eliminated.
The account balance is updated with the lesser of CBRT exchange rate effective on the date and at the time of account opening and CBRT exchange rate on the closure date of the account for the relevant currency. In this case, there may be a loss in the principal.
The demand interest rate as announced by HSBC shall apply to the balance transferred to the account after early closure.

Taxation;

There is a withholding tax exemption on YUVAM accounts.

Click to reach Central Bank of the Republic of Türkiye YUVAM web site for detailed information.