Regional Banks Also Raise Savings and Deposit Interest Rates... Up to 0.5%p Increase

Major Product Interest Rates Adjusted One After Another by Busan and Gyeongnam Banks

Bank of Korea Governor Lee Ju-yeol is striking the gavel at the Monetary Policy Committee plenary meeting held at the Bank of Korea in Jung-gu, Seoul, on the morning of the 25th. (Photo by Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Following the Bank of Korea's base rate hike, commercial banks have been raising savings and deposit interest rates one after another, and regional banks are also gradually increasing their savings and deposit interest rates.

It is analyzed that this is not unrelated to the criticism from inside and outside the financial sector that banks are making excessive profits by exploiting the difference between deposit interest rates and loan interest rates, that is, the interest rate spread.

According to the financial sector on the 30th, BNK Busan Bank will raise the interest rates on time deposits and installment savings by up to 0.50 percentage points per product starting today.

In line with the base rate increase, installment savings products will be raised by 0.30 to 0.50 percentage points, and deposit products will be raised by 0.25 to 0.40 percentage points.

First, the interest rate for the childbirth encouragement product 'Aisarang Free Installment Savings (2-year)' will be raised by 0.50 percentage points from the previous maximum annual rate of 1.20% to 1.70%, and the youth-targeted product 'BNK Naemamdaro Installment Savings' will be raised by 0.30 percentage points from the previous maximum annual rate of 1.30% to 1.60% for the 1-year term.

BNK Gyeongnam Bank will raise the interest rates on 27 types of short-term deposit products, including lump-sum and installment types such as the Donghaenggamsa Time Deposit (special offer), starting from the 1st of next month.

For installment and lump-sum products, the interest rates will be raised by 0.30 percentage points. The interest rates for Jangbyeong Naeil Time Installment Savings and Jaehyeong Savings will be raised by 0.20 percentage points.

Short-term deposit interest rates for corporate commercial paper, repurchase agreements, and promissory notes will be raised by 0.30 percentage points, and demand deposit interest rates will be raised by 0.20 percentage points.

Other regional banks such as DGB Daegu Bank are also preparing to raise savings and deposit interest rates.

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