Up to 7% Annual Interest... KakaoBank Raises Rates on 26-Week Installment Savings and More
'Jeogeumtong' Products Also Offer 10% Annual Interest
[Asia Economy Reporter Minwoo Lee] KakaoBank will raise the interest rates of its 26-week installment savings and savings product 'Jeogeumtong' up to 7% and 10%, respectively.
KakaoBank announced on the 31st that starting from new subscriptions on the 1st of next month, the preferential interest rate for the 26-week installment savings will be increased from a maximum of 0.50 percentage points per year to 3.50 percentage points per year.
The 26-week installment savings is a savings product where the amount automatically increases weekly for 26 weeks by the initial subscription amount. With this interest rate hike, customers who successfully make continuous payments for 26 weeks can receive an interest rate of up to 7%. The subscription amount can be chosen from 1,000 KRW, 2,000 KRW, 3,000 KRW, 5,000 KRW, or 10,000 KRW. If 10,000 KRW is selected, the payment will be 10,000 KRW in the first week, 20,000 KRW in the second week, 30,000 KRW in the third week, and so on. This means up to 3.51 million KRW can be deposited. Each person can open up to 30 accounts for the 26-week installment savings.
Along with this, the basic interest rate for the small savings product 'Jeogeumtong' will also be raised to 10% per year. Existing customers will also receive the increased interest rate starting next month. This product automatically saves by collecting spare change in the account. The maximum savings limit is 100,000 KRW. The 'Auto Collect' feature analyzes the balance and transaction patterns of the linked deposit and withdrawal account over six months using an artificial intelligence (AI) algorithm and automatically collects an appropriate savings amount once a week.
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A KakaoBank official said, "We raised the interest rates as a way to repay the interest and love shown by customers for the 26-week installment savings and Jeogeumtong products," adding, "We hope customers enjoy the fun of challenging the 26-week installment savings maturity, the joy of collecting spare change with Jeogeumtong, and also benefit from the high interest rates."
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