[Wise Saving Life④] Zero Interest Rate Era... Consider Turning to Savings Banks

[Asia Economy Reporter Kim Min-young] In the era of zero interest rates, many financial consumers express dissatisfaction with the low interest rates on savings and time deposits at commercial banks. On the other hand, savings banks are offering savings and time deposit products with high interest rates. Customers worried about potential insolvency of savings banks can diversify their deposits up to 50 million KRW per bank. This is because, under the Depositor Protection Act, the principal and interest up to 50 million KRW are guaranteed by the government. Here are some noteworthy savings and time deposit products from savings banks.

According to the Korea Federation of Savings Banks as of the 3rd, the average interest rate for 12-month fixed deposits at savings banks is 1.91% per annum. Despite the Bank of Korea’s big cut (a 0.5 percentage point reduction) lowering the base rate to 0.75%, interest rates have actually increased, drawing attention.

◆ Welcom Savings Bank’s ‘Welbanghaja Fixed Installment Savings’ offering 5% annual interest = The Welbanghaja Fixed Installment Savings product launched by Welcom Savings Bank in March is not a limited-time special sale product but is sold continuously. It can offer up to 5% interest if simple conditions are met.

The basic interest rate is 1.5% per annum, and if at least two CMS or Giro automatic payments are made monthly via the Welcom Savings Bank’s free deposit and withdrawal account for six months or more during the contract period, a preferential interest rate of 2.0 percentage points per annum is added. Additionally, if the average balance in the Welcom Savings Bank free deposit and withdrawal account is maintained at 500,000 KRW or more, an extra preferential interest rate of 1.5 percentage points per annum is granted.

This product is most popular among customers in their 30s who are office workers. It can be easily subscribed to anytime through the Welcom Digital Bank application (app).

◆ ‘JTjjeom People Plus Fixed Installment Savings’ preparing for the future with memories made with family = These days, with remote work due to COVID-19, people spend a lot of time with their families. How about taking the opportunity to reflect on the importance of family with the JTjjeom People Plus Fixed Installment Savings product?

JTjjeom People Plus Fixed Installment Savings offers up to 3% interest to families living with their pet dogs. Through this product, you can build memories and also prepare for unforeseen future incidents. Since payments can start from as low as 10,000 KRW, it is not burdensome, and the subscription process is simple by just presenting a photo taken with your pet dog.

◆ SBI Savings Bank ‘Parking Account’ offering 2% interest even for one day deposit = SBI Savings Bank offers a free deposit and withdrawal account with a 2% interest rate through the Saida Bank app. This product features monthly interest payments. For example, depositing 6 million KRW for one month yields a pre-tax interest of 10,000 KRW. Additionally, transfer fees via the Saida Bank app, deposit and withdrawal fees at banks and convenience stores, and deposit/withdrawal notification services are all provided free of charge. Customers can withdraw money anytime, making it highly liquid while also expecting high interest income, making it very popular among customers who want to lock in a lump sum for a short period. This product is known as a representative parking account in the financial sector. A parking account refers to a free deposit and withdrawal account that offers relatively high interest rates while allowing short-term deposits and withdrawals, similar to parking a car temporarily.

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