Unusual Competition in Savings and Deposits... Preferential Interest Rates Are Not Easy

Gwangju Bank's 'TenTen Archery Savings', Woori Bank's 'Yumi's Cells' Partnership Savings
Preferential Interest Rates Require Archery Competition Win and Low-Carbon Activity Certificate Submission

As banks continue to roll out high-interest savings and installment savings products to secure deposits, unique offerings are also drawing attention. However, some come with stringent preferential interest rate conditions, so it is important to carefully review the terms before signing up.

As the era of a 3% base interest rate opens for the first time in 10 years, commercial banks have been raising deposit interest rates one after another, bringing bank fixed deposit rates close to the 5% annual mark. On the 26th, a banner displaying the interest rate for fixed savings was posted at a commercial bank in Seoul. Photo by Jinhyung Kang aymsdream@

According to the banking sector on the 12th, Gwangju Bank launched the 'TenTen Archery Installment Savings' on the 7th, offering a maximum annual interest rate of 5%. The basic interest rate is 3.4% per year (based on fixed installment savings), with an additional 0.2 percentage points preferential interest rate for signing up through non-face-to-face channels such as smart banking and mobile web banking.

This installment savings product was released to support the success of archery teams from Gwangju Bank and Gwangju Women's University participating in the international sports archery competition held in China this October. Additional preferential interest rates are provided based on the final results of the competition. For each player’s win, an additional 0.3 percentage points per year is given; for second place, 0.2 percentage points; and for third place, 0.1 percentage points, with a maximum of 1.4 percentage points per year. For example, if two players participate and achieve four wins and one second place, the maximum additional preferential interest rate can be received. The subscription limit is KRW 200,000 per month (one account per person), with a one-year term, and subscriptions are available at all Gwangju Bank branches, smart banking (application), and mobile web banking.

On the same day, Woori Bank launched the ‘N-Day Installment Savings’ in partnership with the popular webtoon ‘Yumi’s Cells,’ offering up to 6% annual interest. Utilizing the world of Yumi’s Cells, when making installment payments, the protagonist ‘Yumi’s’ emotions are personified as ‘Emotion Stamps’ and accumulated in an emotion diary. The basic interest rate is 2%, with an additional 1.0 percentage point if the subscriber has not signed up for any Woori Bank savings or installment savings products at the time of subscription, and an additional 3.0 percentage points if more than half of the subscription period’s payments are made and at least three-quarters of the emotion diary is filled.

BNK Busan Bank has been selling the ‘Low Carbon Practice Deposit’ since the 4th, which offers preferential interest rates for low-carbon activities. The basic interest rate is 2.85% per year, with a special promotional rate of 0.7 percentage points, and up to 0.4 percentage points additional for using public transportation, participating in the carbon points system, or owning an eco-friendly vehicle, allowing for a maximum interest rate of 3.95% per year. Last month, Busan Bank also launched the ‘You’re Solo’ installment savings, a marriage-specialized product that offers a preferential interest rate of 5.0 percentage points if the subscriber gets married during the subscription period, providing a maximum annual interest rate of 9.0%.

Although these deposits offer high interest rates of up to 4% annually and installment savings up to 9%, to actually receive these rates, athletes must win sports competitions, or subscribers must present proof of participation in the carbon points system to the bank, leading to criticism that these are ‘bait products.’

On the other hand, some products stand out for offering the highest interest rates without complicated conditions. Toss Bank’s free installment savings apply the highest annual interest rate of 5% simply by setting up automatic transfers, and SC First Bank’s demand deposit product ‘First EZ Account’ offers a preferential interest rate of 1.0 percentage point for the first six months after account opening for new customers, providing up to 3.6% annually.

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