Türkiye CBI US$500,000 bank account: Regulations and interest rates

The Türkiye CBI US$500,000 bank account is one of 4 eligible investment options under the citizenship by investment programme of Türkiye. This option allows investors to open a deposit account at a Turkish commercial bank with a minimum balance of US$500,000 and a commitment to maintain it for 3 years — in exchange for citizenship rights for the whole family without having to own tangible assets or operate a business.

Compared to the US$400,000 real estate and US$500,000 government bond options, the bank deposit option has the simplest process but also comes with the most complex considerations regarding exchange rates and interest rates. This article provides a detailed analysis of the legal framework, 3 types of eligible accounts, actual interest rates for the 2024-2026 period, the role of the Banking Regulation and Supervision Agency (BDDK), and the risks investors need to anticipate before participating Türkiye Citizenship by Investment programme through this option.

Legal framework of the Türkiye CBI US$500,000 bank account

The legal basis for the deposit option lies in Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law No. 5901 and the Law on the Protection of the Value of the Turkish Currency. These 2 documents clearly define the minimum threshold condition of US$500,000 (or equivalent in EURO, GBP, Swiss Franc, or Lira) and the 3-year continuous maintenance period.

The implementing agencies consist of 3 coordinating bodies: the Banking Regulation and Supervision Agency (BDDK) issues the Certificate of Conformity for investment conditions; the Central Bank of the Republic of Türkiye (TCMB) performs foreign currency conversion and issues the DAB document; the commercial bank where the investor opens the account is responsible for blocking the balance and reporting periodically to the BDDK.

According to announcements from the Banking Regulation and Supervision Agency of Türkiye, the BDDK confirmation process usually takes 3-5 working days from the time the bank submits the application. After the BDDK issues the Certificate of Conformity, the investor can proceed to apply for a short-term residence permit under the investment category and the citizenship application.

An important regulation from 06/01/2022: investors are required to convert foreign currency through the TCMB and the 3-year deposit account must be opened in Lira (TRY). This regulation aims to support the Turkish Government’s policy of protecting the value of the Lira during the 2022-2024 currency crisis. However, in the 2026 market reality, some banks and legal advisory firms allow for more flexible structures — investors need to confirm with the specific bank before transferring capital.

3 types of eligible accounts and actual interest rates

The implementing regulation allows investors to choose 3 main types of deposit accounts. Each type has significantly different risk, interest rate, and USD conversion characteristics.

Type 1: USD/EURO deposit (Döviz Vadeli Hesap)

This is the account type preferred by international investors as it ensures USD-denominated capital preservation. The balance is maintained in USD, EURO, GBP, or Swiss Franc throughout the 3 years. USD/EURO deposit interest rates at Turkish commercial banks in 2026 fluctuate:

• 12-month USD term deposit: 3.5-6% per year
• 12-month EURO term deposit: 2-4% per year
• 12-month GBP term deposit: 3-5% per year

These interest rates are significantly lower than Lira deposit rates but ensure USD face value stability. The total interest received over 3 years with a US$500,000 investment in a USD term deposit at a 5% interest rate is approximately US$75,000 before tax. This option is suitable for Vietnamese investors with a capital preservation strategy who do not have plans for spending in Türkiye.

Important note: according to the 06/01/2022 regulation, some banks require converting USD to TRY before opening a 3-year deposit account. In this case, the investor falls into the Lira deposit scenario (see Type 2) regardless of having transferred USD initially. It is necessary to clearly verify the policy of each bank before implementation.

Type 2: Pure Lira deposit (TRY Vadeli Hesap)

A deposit account in the domestic Lira currency. The nominal interest rate is the highest among the 3 types — fluctuating between 35-50% per year in 2026, reflecting the tight monetary policy to control inflation by the TCMB.

However, the actual USD-denominated yield depends entirely on Lira exchange rate fluctuations. During the 2022-2025 period, the Lira depreciated by approximately 25-40% per year against the USD. After conversion, the total USD value of the Lira deposit after 3 years could decrease by 20-50% — meaning the investor loses US$100,000-250,000 in capital even though they are still naturalised.

The pure TRY option is only suitable for investors with a specific strategy: long-term spending plans in Türkiye (buying a house, business, education), belief in Lira stability in the medium term, or a multi-currency USD hedging strategy. For the majority of Vietnamese investors, this option is not recommended.

Type 3: KKM – Currency-protected deposit (Kur Korumalı Mevduat)

KKM is a hybrid product introduced by the Turkish Government at the end of 2021 to encourage depositors to stay with the Lira. How it works: investors deposit Lira with standard TRY interest rates, but if the Lira depreciates against the USD/EUR by more than the interest earned, the Government compensates for the difference.

The KKM structure offers dual benefits: investors receive higher interest than USD deposits (when the Lira is stable) or exchange-rate protection (when the Lira depreciates significantly). Nominal TRY KKM interest rates in 2026 range between 35-45% per year. This product is available at all commercial banks and Islamic participation banks.

However, KKM comes with two systemic risks to note. First, the long-term sustainability of the programme is debated — the budgetary cost for the exchange-rate protection mechanism increases with each wave of Lira depreciation, which may force the Government to adjust the terms. Second, the compensation mechanism only applies to USD/GBP/EUR — if the Lira depreciates against another currency, the investor receives no compensation.

Process for opening an account and blocking US$500,000

The implementation process for the Türkiye CBI US$500,000 bank deposit option goes through six main steps.

1. Obtain a Turkish tax number: done at any local Tax Office (Vergi Dairesi) with a passport, free of charge and issued on the same day.
2. Open a bank account in Türkiye: choose a commercial bank licensed by the BDDK. Investors can open an account via a Power of Attorney to a local lawyer, with no personal presence required.
3. Transfer US$500,000 from an overseas account: international transfer via the SWIFT system, where the source bank must be able to trace the origin of the funds.
4. Receive the DAB certificate from the TCMB: Central Bank of the Republic of Türkiye (TCMB) issuance of the Foreign Exchange Conversion Certificate. The total DAB value must be ≥ US$500,000 at the exchange rate on the conversion date.
5. Sign a 3-year block commitment and open a deposit account: the bank notes the withdrawal restriction on the account and issues an official commitment letter.
6. Obtain a Certificate of Conformity from the BDDK: the bank submits the application to the BDDK, and the BDDK reviews and issues the Certificate of Conformity within 3-5 working days.

The entire process from account opening to receiving the BDDK Certificate usually takes 3-6 weeks. Investors can split the US$500,000 across multiple banks to reduce concentration risk — but the total value across all banks must maintain the threshold and the 3-year period is calculated from the date of the final block (if opened in multiple tranches).

Deposit insurance and banking system risks

The Turkish banking system is supervised by the BDDK and insured by the Savings Deposit Insurance Fund (TMSF – Tasarruf Mevduatı Sigorta Fonu). This is an important factor for investors depositing US$500,000 for 3 years.

The TMSF insurance limit in 2026 is TRY 950,000 per account per bank (approximately US$22,000 at the April 2026 exchange rate). This is much lower than the US$500,000 investment — meaning the excess amount is not officially insured in the event of a bank failure.

However, major Turkish banks classified as “systemically important” have strong capital and are unlikely to fail. History records no instances of major Turkish commercial banks defaulting on retail clients. Investors can minimise concentration risk by splitting the US$500,000 across 2-3 banks — achieving both diversification and TMSF insurance for each separate account.

Taxes and regulations related to deposit interest

Interest earned from bank deposits in Türkiye is subject to withholding tax. The tax rate varies by currency type and maturity.

For USD/EUR/GBP deposits, the withholding tax rate in 2026 is generally 13%, applied at the time interest is paid. For TRY and KKM deposits, rates range from 5-15% depending on maturity — the longer the maturity, the lower the tax rate. The bank deducts tax automatically, and investors do not need to self-declare.

Vietnam and Türkiye have a Double Taxation Agreement (DTA) signed in 1996 which remains in force. Under the DTA, deposit interest received in Türkiye may be tax-reduced or exempt from double taxation in Vietnam — subject to the specific provisions of each clause. Investors must obtain a Tax Residency Certificate from Vietnam to benefit from DTA concessions.

For investors who are non-tax residents in Türkiye (after obtaining citizenship), global income is not taxed in Türkiye. This is a significant advantage compared to certain countries that apply worldwide income taxation.

Comparison with the other 3 Türkiye CBI options

To choose the right option, investors need to compare the bank deposit with the other three options based on liquidity, yield, risk and complexity criteria.

Compared to the US$400,000 real estateoption, bank deposits require higher capital (US$500,000 vs US$400,000) but are much simpler in legal procedure — no SPK valuation required, no TAPU required, and no risk of artificial valuation. Real estate has asset appreciation potential, whereas deposits only offer fixed interest. For investors prioritising absolute liquidity and simplicity, deposits are a safer choice.

Compared to the US$500,000 government bonds, the two options share the same capital threshold and holding period. The main difference is the yield — Turkish Eurobonds typically yield 7-12% (higher than USD term deposits at 3-6%), but market prices fluctuate with interest rates and may decline over the 3 years. Deposits fix 100% of the nominal value but yield less. The choice depends on the investor’s risk appetite regarding secondary price volatility.

Compared to the creating 50 jobs, bank deposits are a fully passive option. The job-creation option requires actual business operations — which is unsuitable for most Vietnamese investors coming from other industries.

Risks and important considerations

The bank deposit option comes with four main risk groups that require careful assessment before implementation.

Risks Lira exchange rate risk is a primary concern if investors are required to deposit in TRY under the regulation dated 06/01/2022. The Lira has depreciated significantly over the past 4 years — turning a US$500,000 investment into the equivalent of US$300,000-400,000 after 3 years. Mitigation: prioritise banks that allow direct USD accounts, or choose KKM with the exchange-rate protection mechanism.

Risks insufficient deposit insurance relates to the TMSF limit of only TRY 950,000 (~US$22,000). Mitigation: split the US$500,000 across 2-3 of the largest Turkish banks belonging to the “systemically important” group — gaining separate insurance coverage while reducing concentration risk.

Risks policy changes especially regarding KKM. This product has been adjusted by the Government multiple times since its introduction, and the compensation mechanism may change during the 3-year deposit. Mitigation: carefully read contract terms and require the bank to commit to key terms in the original document.

Risks AML and source of funds are increasingly strict. Turkish banks require investors to provide full documents proving the origin of assets — bank statements for 6-12 months, tax returns, business contracts or employment contracts. The application rejection rate due to AML was 10-15% in 2026 for investors from certain high financial-risk markets.

Conclusion and next steps

The Türkiye CBI US$500,000 bank deposit is a suitable option for Vietnamese investors who prioritise absolute liquidity, simplified legal procedures and wish to avoid asset management risks. The optimal strategy is to choose a USD term deposit with a 4-6% interest rate for a 12-36 month term, split across 2-3 major banks to benefit from separate TMSF insurance and reduce concentration risk. Total 3-year interest of approximately US$60,000-90,000 before tax is a reasonable return in exchange for high capital safety.

Before implementation, investors need to complete opening a Turkish bank account and obtaining a Defter tax number. To understand the overall framework of the programme, refer to further Turkish CBI overview 2026 and Turkish passport and the US E-2 route — an article providing a strategic angle on travel benefits and the pathway to combining US investment through a Turkish passport.

Vietnamese paper documents required for residence permit and citizenship applications must undergo a 3-step consular legalization (before 11/09/2026) or Apostille (from 11/09/2026 when the Hague Apostille Convention takes effect in Vietnam). Choosing the right submission timing to align with the Apostille milestone can save significant time and notarisation costs.