[Weekly Savings Banks] Raising Interest Rates When Others Lower to Attract Customers

[Asia Economy Reporter Minyoung Kim] SBI Savings Bank, the industry leader in asset size, has raised its fixed deposit interest rates by 0.1 percentage points.

On the 1st, SBI Savings Bank increased the interest rates on fixed deposit products (12 months or longer) by 0.1 percentage points.

With this rate hike, the base interest rate rose from the previous 1.6% per annum to 1.7%. Additionally, if customers subscribe through non-face-to-face channels such as internet banking, smart banking, or the SB TokTok application (app), they receive an extra preferential rate of 0.1 percentage points, allowing for a maximum rate of 1.8%.

For non-face-to-face revolving fixed deposits, an additional preferential rate of 0.1 percentage points is added, offering a top interest rate of 1.9%.

In an ultra-low interest rate era where other savings banks and commercial banks are collectively lowering rates, SBI Savings Bank’s decision to raise rates has been seen in the market as a sign of confidence from the top savings bank. As of the second quarter of this year, the bank achieved total assets of KRW 10.2112 trillion and recorded a net profit of KRW 133.6 billion. SBI Savings Bank is the first savings bank to surpass KRW 10 trillion in total assets.

Use Naver Pay with Savings Bank Accounts

Savings bank customers can now use the Naver Pay service.

The Korea Federation of Savings Banks announced that, starting from the 4th, through a business partnership with Naver Financial, services such as remittance and payment using savings banks’ ordinary deposit accounts are now available on Naver Pay.

Following last year’s major simple payment and remittance service providers Toss, Kakao Pay, and Payco, the addition of Naver Pay service has made the non-face-to-face financial service environment more convenient for savings bank customers.

According to the Federation, the use of simple payment and other services by savings bank customers is increasing. In November last year, there were only 5,153 transactions amounting to KRW 900 million, but as of July this year, the number of transactions rose to 25,859 and the amount to KRW 3.9 billion, a fivefold increase in transactions and a 4.3-fold increase in amount.

Park Jaesik, Chairman of the Korea Federation of Savings Banks, stated, “We will further expand financial convenience for savings bank customers through partnerships with fintech (finance + technology) companies and the provision of open banking services, creating an environment where financial consumers can use savings banks conveniently and familiarly.”

JT Savings Bank Donates to Foster Care Children

JT Savings Bank has donated funds to the Korea Social Welfare Association, a specialized child protection social welfare corporation, to support children in foster care.

This donation was planned to help foster care children in the Seoul and Gyeonggi regions, where economic difficulties have intensified due to the recent resurgence of COVID-19 centered around the metropolitan area. The donation ceremony was held on the 2nd at the savings bank headquarters in Seongnam, Gyeonggi Province, attended by Choi Seongwook, CEO of JT Savings Bank, and Kim Seokhyun, Chairman of the Korea Social Welfare Association. The donation will be distributed to 100 foster care families in the Seoul area to purchase necessary items for child-rearing such as clothing, shoes, and blankets.

Choi Seongwook, CEO of JT Savings Bank, said, “We decided to provide this support so that children in foster care, who cannot live with their parents for various reasons, can grow up bright and healthy even amid COVID-19. We will continue to promote various social contribution activities to help neighbors in need.”

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