Sign Up Before Rates Drop... Savings Banks Offering 3% Installment Savings to Watch

[Asia Economy Reporter Kim Min-young] Following the Bank of Korea's base rate cut (a 0.5 percentage point cut, known as a big cut), savings bank deposit interest rates are expected to be lowered one after another. Although still higher compared to banks, the average savings bank deposit interest rate has also fallen to the 1% range annually. Nevertheless, if you look carefully, there are savings and installment savings products that offer relatively high interest rates.

According to the Korea Federation of Savings Banks on the 22nd, as of the 20th, the average deposit interest rate of 79 savings banks was 1.89% per annum (1-year maturity). For 2-year and 3-year maturities, the rates were 1.92% and 1.93%, respectively, indicating that savings bank deposit interest rates have already entered the 1% range era.

There are still savings banks offering interest rates above 2%. Among major savings banks, Aequan Savings Bank offers a 2.10% interest rate on deposit products with 1-2 year maturities. This product requires mobile subscription to receive the higher interest rate.

Medium and small-sized savings banks such as Anguk Savings Bank, Cheongju Savings Bank, and Baro Savings Bank also offer a 2.10% interest rate.

Pepper Savings Bank sells a revolving fixed deposit that offers a 2.05% interest rate (based on 1-year maturity) when subscribed to non-face-to-face.

Kiwoom Savings Bank, Moa Savings Bank, Korea Investment Savings Bank, JT Savings Bank, and JT Chinhae Savings Bank have maintained the interest rate floor at 2.0%.

Installment savings products tend to have higher interest rates. Unlike deposits where money is deposited at once, installment savings require monthly fixed or flexible payments, so the actual interest received is generally less than that of deposits.

Welcome Savings Bank’s first-transaction preferential e-fixed installment savings and m-fixed installment savings offer an interest rate of 3.20%. These products can be subscribed to via the internet and mobile respectively, with a payment period of 1 year.

Following them, DB Savings Bank, Eugene Savings Bank, and JT Chinhae Savings Bank offer products with a 3.0% interest rate.

The average installment savings interest rate of 79 savings banks ranges from 2.50% (1 year) to 2.66% (3 years), which is higher than the early 2% range interest rates offered by banks even after including preferential rates.

However, the interest rates of each savings bank may vary depending on individual customer preferential conditions. Deposit and installment savings interest rates can be checked on the Korea Federation of Savings Banks website, the common savings bank application ‘SB Toktok Plus,’ or the Financial Supervisory Service’s ‘One-View Financial Products’ website.

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