Bank Deposit and Savings Interest Rates Rise Across the Board... Savings Banks Also Offer High-Interest Products (Comprehensive)

Shinhan Bank raises rates by up to 0.3%P from today... NongHyup Bank to increase from next month 1
KB Kookmin, Hana, and Woori Banks also considering... Foreign and internet banks plan hikes too

Bank Deposit Interest Rates Rise Across the Board... Rate Adjustments Expected to Continue for the Time Being

[Asia Economy Reporter Lee Kwang-ho] Along with the Bank of Korea's base interest rate hike, deposit interest rates at commercial banks are also rising across the board.

According to the Korea Federation of Banks and the banking sector on the 30th, Shinhan Bank raised its deposit interest rates by 0.2 to 0.3 percentage points on the same day.

The 1-year fixed deposit product 'Shinhan S Dream Time Deposit' was adjusted upward from 0.60% to 0.85%, and the installment savings product 'Shinhan S Dream Installment Savings' was raised from 0.80% to 1.05%, both by 0.25 percentage points.

NH Nonghyup Bank also plans to raise deposit interest rates by 0.05 to 0.25 percentage points starting from the 1st of next month.

KB Kookmin Bank, Hana Bank, Woori Bank, and others have also decided to raise deposit interest rates soon and are reviewing their deposit rates.

Foreign banks such as Citibank Korea and SC First Bank also plan to raise deposit interest rates reflecting the base rate hike.

Internet-only bank KakaoBank is also planning to raise deposit interest rates this week. Earlier, K Bank uniformly raised the interest rate of its 'CodeK Time Deposit' by 0.2 percentage points across all subscription periods on the 28th.

According to the Bank of Korea Economic Statistics System, the average interest rate on new fixed deposits at domestic banks has remained in the 0% range since May last year, when it was 1.07% per annum. Last month, it was 0.91% per annum. Also, the average interest rate on new installment savings deposits has stayed in the 1.1% range since July last year, recording 1.14% last month. With this deposit interest rate hike, both fixed deposits and installment savings are expected to rise to the low to mid 1% range.

An official from a commercial bank said, "We are reviewing deposit interest rates considering the Bank of Korea's base rate hike and plan to finalize the increase within this week," adding, "Since there is still a possibility of additional base rate hikes within the year, rate adjustments will continue for the time being."

Davichi Savings Bank Offers 6.9% Annual Interest on 'Dream Big Installment Savings'

Meanwhile, savings banks are competitively introducing high-interest deposit products amid the rising interest rate environment.

Davichi Savings Bank launched the 'Dream Big Installment Savings' offering an annual interest rate of 6.9%, combining a base rate of 3.1% and a preferential rate of 3.8%. To receive the preferential rate, subscribers must enroll in and maintain DB Insurance Direct Internet Auto Insurance online from the time of subscription until 30 days before maturity.

Welcome Savings Bank also introduced the 'Welbang Dundeun Installment Savings' offering a base rate of 2.0% plus a preferential rate of 4.0%. This product is advantageous for low-credit customers. Depending on the credit score, preferential rates of 3.0 percentage points for scores below 350, 2.0 percentage points for scores between 350 and below 650, and 1.0 percentage point for scores between 650 and 850 are provided. Additionally, if the account is opened within 30 days from the highest opening date of this bank's deposit products, an extra 1.0 percentage point preferential rate is given.

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