Investment Products

Deposit accounts opened by persons in local and foreign banks authorized to accept deposits in Turkey are included in the insurance system within designated limits.

In calculating the insurance guarantee, the total balance of a person’s accounts in one or different branches of (a local or foreign bank authorized to collect deposits in Turkey) is taken into account. The limit of 50,000 YTL is compared with the total balance and respective interest of deposit accounts opened in one or more branches. For example: If the total of person A's savings deposit accounts opened in two different branches of a bank (including interests accrued until that date) are 60,000 YTL, only 50,000 YTL of this amount will be under guarantee.

For foreign currency deposits and gold storage accounts, the insurance guarantee is also 50,000 YTL. The basis is the Central Bank’s foreign currency (buying) exchange rate and the closing prices at the Istanbul Gold Exchange on date of the revocation of the bank’s license to perform banking activities. According to the above mentioned resolution of the Banking Regulation and Supervision Board, in paying investors, [starting with the date of revocation of the bank’s license to perform banking activities and accept deposits] the insurance guarantee will exclude the amount of interest earnings which exceeds the average interest rate of 5 banks having the highest total of deposit savings in Turkey and the amount of interest earnings which exceeds the maximum interest rates announced by the bank to the public and the Central Bank even if this amount is within the 50,000 YTL limit.

The 50,000 YTL limit for the insurance guarantee of deposited savings, which will be in effect starting with 05.07.2004, will be considered differently for each bank. Each of the two deposit accounts opened by the same person in two different banks will be covered separately by insurance within the 50,000 YTL limit.

Deposit savings opened in the name of minors by guardians or trustees are included in the 50,000 YTL guarantee. The deposit accounts opened by these guardians or trustees in their own names are independently included in the insurance system subject to the 50,000 YTL limit.

For joint deposit savings accounts opened by more than one person, insurance will be extended to 50,000 YTL of each partner’s share.

Savings invested in various investment tools of banks such as repo, treasury bills, government bonds and mutual funds are not covered by the insurance system.

Deposit accounts opened in branches abroad (of banks established in Turkey) are not under the insurance guarantee.

Accounts opened by individuals in the name of enterprises they own are not included in the insurance system because they are commercial accounts.

Repo (repurchase agreement) involves sale with a promise to repurchase. On the day that the customer invests in repo, in exchange for the amount invested, the bank temporarily sells the securities in its portfolio. However, generally, the customer does not physically receive the securities. At maturity, the securities are repurchased by the bank; the customer is given the principal and interest.

In our bank, repo transactions may be conducted until 13:30.

Both are issued by the government to borrow domestically. Treasury bills have maturities shorter than one year. Government bonds have maturities longer than 1 year.

A type funds refer to the funds where stocks comprises at least 25% of the monthly weighted average of monthly portfolio value whereas B type funds invest in capital market instruments other than stocks.

It is a fee collected from customers who have demand deposit accounts (YTL and foreign currency) in exchange of banking services. The fees are charged monthly and determined on the basis of customer numbers. The monthly fee is 1,5 YTL. Customers who have personal credit in our bank are not charged with the Account Maintenance Fee.