Financial Strategies for the Second Half of the Year... Financial Products for 'My Own Seed Money'

Shinhyup Mobile Platform OnBank

[Asia Economy Reporter Kwangho Lee] The first half of 2021 has passed. As daily life and economic activities have been generally restrained due to COVID-19, many people have sought to make quick fortunes through stocks or cryptocurrencies. Risky terms describing reckless investment activities, such as 'Youngkkeul (pulling together all one's soul)' and 'Debt Investment (borrowing to invest),' have now become commonplace.

An official from the National Credit Union Federation of Korea (NACUFOK) advised on the 31st, "Especially at times like this, it is a priority to establish a stable financial portfolio and create your own 'seed money.'"

Seed money refers to the principal capital that can serve as a stepping stone for investment. The most basic way to prepare seed money is through savings and installment savings products offered by commercial banks. Usually, these products are chosen based on interest rates, and using mobile applications (apps) can provide additional interest benefits, so careful comparison is necessary.

Among the top 10 account openings on the mobile app 'OnBank,' which has surpassed 1.15 million subscribers, six are mobile-exclusive products. These include Union Fixed Deposit, e-Paran Installment Savings, Union Fixed Installment Savings, Union Flexible Installment Savings, Dreaming Box, and Lady4U Installment Savings. This is believed to be because thrifty financial planners seeking even slightly higher interest rates flocked to these for tax benefits and interest advantages.

The most frequently opened financial product through the OnBank app is the Union Fixed Deposit. The Union series by NACUFOK is popular because it allows users to enjoy tax-exempt benefits via mobile without visiting local credit unions. Additionally, the base interest rate follows the average deposit rate of nationwide credit unions, offering higher rates compared to commercial banks.

Other popular products include the e-Paran Installment Savings, which offers up to a 0.6% preferential interest rate when simple preferential conditions such as salary transfers are met, and the Dreaming Box parking account, which pays about half the interest of a 12-month fixed deposit on a daily basis.

The Lady4U Installment Savings, a product specialized for female customers, also benefits from mobile preferential interest rates. The NACUFOK Lady4U Installment Savings is an OnBank-exclusive product for women aged 20 to 39, providing up to an additional 1% interest based on the use of check cards in three major sectors with high female purchase frequency?cosmetics, cafes, and online shopping malls?as well as credit union savings and installment savings subscription records and insurance usage. It allows flexible deposits up to 1 million KRW per month, making it easy for women in their 20s and 30s with frequent expenses and irregular surplus funds to manage without burden.

An official from NACUFOK said, "Although there is a wealth of financial information, it is important to build a solid seed money by saving principal and interest steadily through savings and installment savings without losing the principal," and added, "We hope everyone starts practicing their own financial planning from now on."

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