Annual 6% Fixed Deposits Appear... Should You Try 'Yetech'?

After the 'Big Step'... Full-scale Interest Rate Hike Period
Up to 6% Interest Benefits Annually in Savings Banks Sector

After the Bank of Korea's second big step (a 0.5 percentage point increase in the base interest rate at once), savings banks are accelerating the pace of raising deposit interest rates. The photo is not related to the specific content of the article. [Image source=Getty Images]

[Asia Economy Reporter Yoon Seul-gi] Following the Bank of Korea's implementation of a 'big step' (a 0.5 percentage point increase in the base interest rate at once), high-interest fixed deposit products have been appearing one after another. In the savings bank sector, products offering interest rates in the 5% range were introduced just six days ago, and now products providing up to 6% interest benefits have been launched. As the full-scale interest rate hike period begins, the number of people flocking to 'Yetech (deposit + investment tech)' is expected to increase.

According to the banking sector on the 19th, Sangsangin Savings Bank and Sangsangin Plus Savings Bank, affiliated with the Sangsangin group, have significantly raised the interest rates on revolving fixed deposits starting today, offering the industry's highest interest benefit of up to 6.00% per annum.

For revolving fixed deposits, a maximum annual interest rate of 6.00% (an increase of 1.79 percentage points from before) is offered for non-face-to-face subscriptions, and an initial annual rate of 5.91% (an increase of 2.0 percentage points from before) is provided for face-to-face subscriptions. If the interest rate rises during the revolving cycle, the higher rate is applied, and the subscription period can be chosen in one-year increments from a minimum of 24 months up to 60 months.

Following the Bank of Korea's second big step and the subsequent interest rate hikes by major commercial banks, savings banks have also started raising deposit interest rates. On the 13th, Yegaram Savings Bank launched the 'e-Fixed Deposit' with an annual interest rate of 5.15%, and Daol Savings Bank's 'Fi Revolving Fixed Deposit' interest rate was raised by 0.85 percentage points on the 14th, currently reaching up to 5.20% per annum.

As the fixed deposit interest rates of major commercial banks rise, 'Yetech (Deposit + Investment)' is gaining attention. The photo is not related to the specific content of the article. [Image source=Pixabay]

The fixed deposit interest rates of major commercial banks have approached the 5% level. Hana Bank's representative fixed deposit product, 'Hana's Fixed Deposit,' offers a maximum annual interest rate of 4.60%. Separately, Hana Bank plans to raise interest rates on a total of 29 deposit products, including savings and fixed deposits, by up to 0.95 percentage points starting from the 20th.

NH Nonghyup Bank offers up to 4.65% annual interest on its 'NH All One e-Deposit.' Woori Bank applies an annual interest rate of 4.65% for its 'Woori WON Plus Deposit' with a one-year maturity.

However, if the deposit is withdrawn before maturity to switch deposits, some banks apply early termination rates, resulting in interest payments lower than the contracted rate. Currently, the five major banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?pay an average interest rate of 0.22% for early termination within six months on fixed deposits.

Meanwhile, the Bank of Korea's interest rate hike trend is expected to continue. Governor Lee Chang-yong of the Bank of Korea indicated a final base rate of 3.50% and hinted at an additional rate hike in November. At a breakfast meeting with the press corps accompanying the G20 finance ministers and central bank governors meeting in Washington DC on the 15th (local time), Governor Lee said, "The upward trend will continue," adding, "If things go as expected, the final level will be 3.5%."

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