[1mmGeumyungTalk] 'Annual 10% High Interest?' Only 100,000 Won Interest... Beware of 'Bait Products'

Banks Launch Savings Products with 5-10% Annual Interest
Low Deposit Limits and Strict Preferential Rates
Subscribers Find It Hard to Feel High Interest Earnings

Banks are consecutively launching high-interest savings products with annual interest rates exceeding 5%. However, there are concerns that customers receive relatively low actual interest due to stringent preferential interest rate conditions and low deposit limits, warning of so-called "bait products."

According to the financial sector on the 19th, Woori Bank launched the "Woori First Regular Savings" on the 17th, offering a maximum annual interest rate of 5.5%. The basic interest rate is 2.5%, with an additional 3.0 percentage points preferential interest rate for customers who have not held any Woori Bank savings or deposit products, excluding demand deposit products, in the past year. The subscription period is one year, with a maximum monthly deposit limit of 500,000 KRW. SC First Bank started a special interest rate event for the "Mobile Preferential Savings" in partnership with Hyundai Card on the 8th, offering a maximum annual interest rate of 10.75%. Initially, the product offered a maximum annual interest rate of 3.75%, with an additional 7.0 percentage points given upon meeting certain conditions. This product has a one-year maturity and allows monthly deposits of up to 200,000 KRW.

KB Kookmin Bank also accepted pre-registrations last month for the "KB Special Savings," which offers a maximum interest rate of 6.0% annually. The basic interest rate is 2.0% per year, with up to 1.0 percentage point for achieving the target amount, up to 1.0 percentage point for collecting stars, and up to 2.0 percentage points for friend referrals. Customers can subscribe with monthly deposits ranging from 1,000 KRW to 300,000 KRW, with a maturity period between one month and six months. Shinhan Bank operates the "Shinhan Youth Savings King Savings," offering a maximum annual interest rate of 5.85% (based on 36 months). Customers aged between 18 and 39 can subscribe, with a monthly deposit limit of 300,000 KRW. The Shinhan Youth Savings King Savings surpassed 100,000 accounts within 41 days of launch, and the KB Special Savings attracted 53,000 pre-registrations within a week.

Although these products attract customers by advertising "high interest rates," the actual interest income customers receive is not substantial. First, the deposit limits are low. For KB Kookmin Bank's "KB Special Savings," depositing 300,000 KRW monthly for six months at the maximum interest rate of 6.0% results in an interest income of 26,649 KRW (after tax). SC First Bank's "Mobile Preferential Savings," even with a maximum annual interest rate of 10.75% for monthly deposits of 200,000 KRW over one year, yields 118,228 KRW in interest. Woori Bank's "Woori First Regular Savings," with a maximum annual interest rate of 5.5%, provides 151,222 KRW in interest for monthly deposits of 500,000 KRW over one year. A financial sector official stated, "Savings products are difficult to expect significant interest income unless the purpose is purely for saving."

Stringent preferential interest rate conditions are also problematic. For example, to receive the special 7.0 percentage points preferential interest rate on SC First Bank's Mobile Preferential Savings, customers must issue the "SC First Bank·Hyundai Card M BOOST" card and make monthly payments of at least 300,000 KRW for six consecutive months within three months of subscribing to the Mobile Preferential Savings. Additionally, there must be no Hyundai Card credit card payment history in the six months prior to the event period.

There are calls for improvements to help customers intuitively understand their actual interest income. A financial sector official explained, "There is a difference between the nominal interest rate and the actual yield, which can confuse customers," adding, "It seems necessary to display the final yield or strengthen explanations, similar to securities companies."

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