Savings Banks Also Launch Products Amid 'Parking Account Craze'

Surge in Parking Account Popularity Spurs Successive Launches of Savings Bank Products
Used as a Tool to Attract Customers Amid Low Interest Rates and Stock Investment Craze

[Asia Economy Reporter Song Seung-seop] As the craze for parking accounts that accrue interest even after just one day grows, related products are flooding the savings bank industry. It is analyzed that these accounts are being used as a useful marketing tool to retain customers amid the ongoing ultra-low interest rate environment and the outflow of funds into stock investments.

Pepper Savings Bank launched the 'Pepper Lulu Parking Account' with an annual interest rate of 2% on the 8th to commemorate the relocation to its new headquarters. Deposits can be made up to 200 million KRW, with the highest interest rate applied to amounts up to 3 million KRW. For amounts exceeding 3 million KRW, an interest rate of 1.5% is applied. The account can be opened via an application (app) and is limited to individual customers, allowing only one account per person.

On the 1st, Sangsangin Savings Bank released the 'BangBangBang Parking Account 369 Fixed Deposit,' offering a pre-tax interest rate of 1.6%. This app-exclusive product is a compound interest product that applies agreed interest rates according to the deposit period even in case of early termination. The base interest rate is 1.6%, and depending on the deposit period, 1.7% for 3 months or more, 1.8% for 6 months or more, and 1.9% from 9 months onward are applied. It can be subscribed to from 100,000 KRW per person. This product surpassed 50 billion KRW in deposits within just three days of its launch.

SBI Savings Bank operates the 'Cider Bank Deposit and Withdrawal Account' as a parking account. It offers an interest rate of 1.3% annually without any preferential conditions such as previous month’s performance, salary transfers, or automatic transfers. Assuming a deposit of 10 million KRW for one year, approximately 130,777 KRW would be earned as interest. There is no deposit limit. Another advantage is that immediate transfers, automatic transfers, and ATM deposit and withdrawal fees are free.

Low Interest Rate Environment and Stock Investment Craze Lead to Customer Acquisition via Parking Accounts

[Image source=Yonhap News]

The savings bank industry is continuously launching parking accounts to retain funds that are leaving due to low interest rates and stock investments. Instead of fixed savings accounts where funds are locked in, they are creating parking accounts that allow customers to withdraw money freely while offering relatively higher interest rates to attract customers. It is particularly analyzed that parking accounts are appealing products for those who want to temporarily deposit lump sums without investment options or store money earned from stocks.

They are also useful tools for managing the loan-to-deposit ratio. Banks need to maintain a certain ratio between deposits and loans. To increase loan products, they must secure a corresponding amount of deposits, and parking accounts are playing a significant role in this regard.

However, customers need to be cautious as the interest rate application conditions vary by bank when subscribing to parking accounts. High-interest products may require stricter conditions than expected. It is also important to carefully review the deposit period and amount limits that suit one’s asset status.

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