The Yuvam Deposit Protection Program in Turkey is a robust and reliable system that aims to protect the rights of depositors and ensure the safety of bank deposits in the country this program is an essential part of the financial and banking infrastructure in Turkey, and it enhances confidence in the banking system and protects the rights of individuals and companies that deposit their money in Turkish banks, and in this article, we will explore in detail this program to protect deposits in Turkey, and we will learn about its mechanism of action and its main benefits, in addition to highlighting the economic and financial importance of this program in ensuring the stability of the banking system and protecting the rights of depositors.
Learn about the Yuvam Deposit Protection Program in Turkey
It is a financial system imposed by the Central Bank of Turkey to protect depositors' money and this system aims to ensure the preservation of depositors’ capital deposited in Turkish lira from exchange rate fluctuations in the currency market the system allows depositors to take advantage of protection against currency exchange rate differences and benefit from guaranteed profit returns at the end of the maturity period, and these returns are achieved at a rate starting from 3% annually on the deposited amount.
Advantages of Yuvam Deposit Protection Account in Turkey
- 1The Yuvam account is characterized by flexibility in deposit methods and this feature is considered one of its most important features.
- Without an upper or lower limit, the Yuvam account allows you to deposit different amounts according to your needs.
- You can open a Yuvam account at any time you wish, and the exchange rate will be set clearly according to the specified mechanism.
- The central bank guarantees savings protection and your additional return from exchange rate fluctuations.
- In addition, YUVAM accounts contribute to supporting the economy of Turkey, as your savings are part of that support.
- Provides an additional return when the amounts deposited in the account become due.
- Thanks to this account, you will not have to pay fees for transferring amounts in Turkey when transferring your foreign currency transfers from abroad.
- 8There is flexibility to transfer your accounts in US Dollars, Euros, Sterling Pounds, and Swiss Francs to a Yuvam account.
- You can open multiple accounts at any time you wish, to meet your financial needs.
Who are the people eligible to open a Yuvam account?
Foreigners and non-resident Turks who meet one of the following conditions can open a Yuvam account through one of the Turkish banks participating in the program and this includes Turkish citizens who hold residency, work permit, or the right to work outside Turkey, as well as Turkish citizens whose residency is registered with a foreign address in Turkey.
In addition, non-resident foreigners who hold the Blue Card intended for investors, and qualified foreign natural and legal persons are also allowed to open an account in a Turkish bank, companies whose owners are non-residents, which are incorporated in a foreign country according to the laws of that country are allowed, by opening a Youfam account, as long as its legal headquarters is outside Turkey.
How much is Yuvam's annual profit?
YUVAM accounts have an additional return that is paid by the Central Bank of Turkey at different rates, depending on the due date of the amounts transferred in foreign currency and the chosen deposit period available returning styles include:
1% annual return for 3-month deposits.
2% annual return for 6-month deposits.
3% annual return for 12-month deposits.
4% annual return for 24-month deposits.
These returns are determined in addition to the difference between the deposit rate and the exchange rate, so let's say a YUVAM account is opened with $1,000 for a maturity of 12 months, with an annual return of 3% and at the end of the maturity period, the account will guarantee to its owner the equivalent of $1,030, in addition to the profit distribution percentage or interest determined by the banks, as well as the exchange rate difference and this difference is covered by the Central Bank of Turkey.
Do the participants in the Yuvam program get additional income?
Yes, the participants in the Yuvam program get additional returns determined by the banks according to the deposit periods and deposit amounts.
What happens if there is an exchange rate difference between the time of deposit and withdrawal?
The Central Bank of Turkey offers a guarantee to protect the exchange rate between the time of deposit and withdrawal in the Yuvam program.
Is there a minimum deposit required to participate in the Yuvam program?
No, there is no minimum deposit required to participate in the Yuvam program.
Can I get additional information about the Yuvam program?
Certainly, you can obtain additional information about the Yufam program by visiting the official website of the program or viewing the educational materials and videos on the site.
Can foreigners not residing in Turkey participate in the Yuvam program?
Yes, foreigners who are not residents of Turkey can participate in the Yuvam program if they meet the specified conditions.
Are foreign companies entitled to participate in the Yuvam program?
Yes, foreign companies are entitled to participate in the Yuvam program if they are established in a foreign country and comply with the specified laws.
How can I benefit from the Yuvam program?
You can benefit from the Yuvam program by opening an account in one of the Turkish banks participating in the program and investing your savings in Turkish lira.
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