High inflation deeply and permanently alters individuals’ saving behavior. The perception that traditional saving instruments such as bank deposits and gold are insufficient to preserve the value of savings is observed in many high-inflation economies. In Turkey, especially during the 2022–2023 period, the high inflation rates announced by TUIK caused deposit interest rates to remain negative in real terms and strengthened the perception that savers’ purchasing power was declining (TUIK, 2023).

When people believe that inflation will exceed deposit returns, they tend to shift toward alternative saving and investment instruments. Foreign currency, real estate, crypto assets, and informal financial tools are among these alternatives. A weakening of trust in the banking system stands out as one of the main factors affecting saving behavior. IMF assessments of Turkey also indicate that high inflation and a low real interest rate environment significantly influence financial preferences (IMF, 2023). In addition, data from the Central Bank of the Republic of Turkey show that during periods of increased exchange rate volatility, the share of foreign currency accounts rises and dollarization tendencies strengthen (CBRT, 2023).

Moreover, certain public claims regarding banking practices and narratives circulating on social media reinforce this loss of trust. For example, allegations that some accounts can be reopened despite being closed raise questions such as, “Are banks engaging in illegal activities?” or “Are our savings safe?” Especially in the social media era, such claims spread rapidly and increase social anxiety during periods of economic uncertainty.

Following the 2021 currency crisis in Turkey, the Exchange Rate Protected Deposit scheme was introduced to keep savers in Turkish lira and limit foreign currency demand (CBRT, 2021). The system aimed to compensate exchange rate losses through public resources. Although it initially reduced demand for foreign currency, over time the fiscal burden and pressure on the budget led to its termination as of 2024. This experience contributed to the emergence of a cautious attitude even toward state-supported financial and saving instruments.

Gold, traditionally regarded as a “safe haven” has also experienced strong demand in Turkey during high-inflation periods. Particularly in 2022 and 2023, there was a significant increase in physical gold demand. Reports from the jewelry sector and Borsa Istanbul indicated rises in both gram-gold transactions and physical gold purchases (Borsa Istanbul, 2023). In the face of the depreciation of the Turkish lira, individuals have preferred to hold their savings in a more “tangible” and traditional asset. Additionally, gold has a strong cultural dimension in Turkey; the long-standing tradition of accumulating gold during weddings and special occasions has supported demand for centuries.

However, gold does not always provide stable returns. In global markets, decisions by the U.S. Federal Reserve and geopolitical developments directly affect gold prices in Turkish lira. Therefore, significant volatility can be observed in gold prices in the short and medium term. In some periods, sharp declines following rapid increases have caused losses for savers.

Thus, although gold is seen as a tool that can provide protection against inflation in the long term, it is not entirely risk-free due to short-term uncertainties and price fluctuations. This situation leads individuals, despite turning to gold in high-inflation environments, to refrain from viewing it as an absolutely safe saving instrument.

Furthermore, past events in Turkey, such as the 2001 banking crisis, remain embedded in the collective memory of society. During times of economic instability, these experiences are recalled and increase risk perception.

In conclusion, in Turkey’s high-inflation environment, individuals base their saving decisions not only on interest rates but also on exchange rate stability and past experiences. The cautious approach toward the banking system and traditional saving instruments increases alongside economic uncertainty, transforming saving behavior into a more diversified structure oriented toward alternative assets.

In conclusion, in Turkey’s high-inflation environment, individuals base their saving decisions not only on interest rates but also on exchange rate stability and past experiences. The cautious approach toward the banking system and traditional saving instruments increases alongside economic uncertainty, transforming saving behavior into a more diversified structure oriented toward alternative assets.