No, you don't need to report your transfer to another Foreign Bank as a 'deduction'.
As @FangxiaL suggests above, just enter the 'Maximum Account Value in 2021' for each of your foreign accounts; the original one and the new one that you transferred funds into.
If you had more than $10,000 as a Maximum Balance in either of your accounts, you do not need to file a Form 8938 "Statement of Specified Foreign Financial Assets", which TurboTax handles.
However, you would need to file a FinCENForm 114, which is not handled by TurboTax. Click here to file FinCENForm 114: https://bsaefiling.fincen.treas.gov/main.html
File your Form 1040 as directed and file the FinCENForm 114 from the above-attached link. Also, see this for reference: Comparison of Form 8938 and FBAR Requirements.
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