Hana Bank Lowers Interest Rates on Savings and Time Deposits... Some Products as Low as 0.75%

Interest Rates on Deposit Products Reduced by 0.25~0.30%P
All Savings and Deposit Products Now Below 1% Interest Rate
Reduced Interest Rates Applied to Reinvestment of Jaehyeong Savings

Hana Bank Homepage Capture

[Asia Economy Reporter Kim Min-young] Hana Bank has collectively lowered the interest rates on its deposit products.

Hana Bank announced that starting from the 2nd, it will reduce the interest rates on savings and installment savings products by 0.25 to 0.30 percentage points.

About 20 products, including installment savings and fixed deposits, are affected, and for four discontinued products (Hanadwen Pyeongchang Fixed Deposit, Kkumnamu Savings, Jaehyeong Savings (variable), Shin Jaehyeong Savings), the reduced interest rates will apply upon re-deposit.

Hana Bank was the only commercial bank that delayed lowering deposit interest rates even after the Bank of Korea cut the base rate to 1.25% last October. It had hesitated to reduce major deposit interest rates due to concerns about customer attrition amid the ultra-low interest rate environment, but it is now adjusting rates as it can no longer withstand the deterioration of interest margins.

The e-Plus Savings rate for a 1-year term was lowered by 0.25 percentage points from the previous 1.60% to 1.35%. The 2-year and 3-year terms were also reduced by 0.25 percentage points each, from 1.70% to 1.45% and from 1.80% to 1.55%, respectively.

The relatively high-rate Happy Together Savings was also reduced for installment savings from 1.95% (5 years) to 1.65% (1 year) down to 1.65% to 1.35%.

The 1-year flexible installment Hana One Q Savings was lowered by 0.30 percentage points from 1.80% to 1.50%.

The 369 Fixed Deposit previously offered 1.60% for deposits of 100 million KRW or more for 1 year, but new subscriptions will receive an interest rate of 1.35%. For deposits between 30 million KRW and less than 100 million KRW, the rate was lowered from 1.55% to 1.30%, and for deposits between 3 million KRW and less than 30 million KRW, from 1.50% to 1.25%, each reduced by 0.25 percentage points.

On the 3rd, the headquarters of Hana Bank in Jung-gu, Seoul, displayed the brand name "Hana Bank" without "KEB." Hana Bank announced that from this day forward, the brand name will change from KEB Hana Bank to "Hana Bank," marking a fresh start as the new Hana Bank preparing for the next decade. Photo by Hyunmin Kim kimhyun81@

For the discontinued Jaehyeong Savings, the interest rate will be 1.90% upon re-deposit, down from 2.35%.

However, for affiliated savings products, the reduced interest rates will be applied starting from the 20th.

Hana Bank stated, “The new (re-deposit) rates will apply to accounts opened after the effective date, while existing accounts for the respective products will continue to receive the previous rates. Only the base interest rates have changed; preferential rates by product remain unchanged.”

This content was produced with the assistance of AI translation services.