"1-Month Term Available" MZ-Targeted 'Ultra-Short-Term Savings' Launched One After Another

Major commercial banks are consecutively launching 'ultra-short-term savings accounts' with maturities starting from as short as one month. This strategy targets the MZ generation (Millennials + Generation Z), who prefer short-term deposits.

KB Kookmin Bank launched the 'KB Special Savings' on the 12th, shortening the minimum maturity period from the previous six months or more to just one month. This is to meet the demands of customers looking to save for short-term specific purposes. Customers can change the maturity date up to one month after joining, allowing them to receive the maturity interest rate instead of the early withdrawal rate.

The maturity interest rate for this product is up to 6% per annum. The base interest rate is 2% per annum, with preferential rates of up to 1 percentage point per annum for reaching the target amount and up to 1 percentage point per annum for achieving the 'Star Collection' goal. Additionally, a preferential interest rate of up to 2 percentage points per annum is offered for friend referrals. The subscription amount ranges from a minimum of 1,000 KRW to a maximum of 300,000 KRW per month, with maturities between one month and six months.

Hana Bank also introduced the 'Hana Timing Savings' on the 7th. The maturity period ranges from a minimum of one month to six months, with an interest rate of a base 2.95% per annum plus a preferential rate of up to 1 percentage point, allowing for a maximum of 3.95% per annum.

IBK Industrial Bank shortened the minimum subscription period of the 'IBK D-Day Savings' from six months to one month on the 3rd. The interest rate is a base 3.45% per annum, with a maximum of 5.35% upon meeting preferential conditions. Internet-only bank K Bank also added one-month and three-month subscription periods to its 'CodeK Flexible Savings.'

The reason banks are launching these ultra-short-term savings accounts is due to recent revisions in the regulations by the Bank of Korea. Previously, under the Bank of Korea's regulations on interest rates for financial institutions' deposits and loans, the minimum maturity for regular savings accounts was set at six months. Kakao Bank's '26-week Savings' was created because of this, representing half of 52 weeks, which is roughly equivalent to one year.

However, in November last year, the Bank of Korea's Monetary Policy Committee resolved to revise these regulations in response to the launch of internet-only banks and changing consumer demands in the financial sector, allowing ultra-short-term savings accounts to be launched starting April 1 this year.

Although these products may appear to offer high interest rates, the interest earned on a one-month savings account is only about 1,200 KRW after tax. A representative from a commercial bank explained, "There is considerable demand for short-term savings among the MZ generation these days, which is why such products have been introduced."

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