Wriggling Interest Rates... All Deposits at 5 Major Banks Reach 4% Range

[Image source=Yonhap News]

As the maturity dates approach for the high-interest savings and deposit products introduced by banks in the second half of last year, competition for high-interest deposit products is reigniting. All five major banks have recorded interest rates in the 4% range for their key deposit products.

According to the Bankers Association disclosure on the 7th, the representative deposit products of KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup Banks all recorded an annual maximum interest rate in the 4% range (as of the 6th, for 12-month maturity). Woori Bank's 'WON Plus Deposit' and NH Nonghyup Bank's 'NH All One e-Deposit' offer an annual maximum interest rate of 4.05%. Shinhan Bank's 'Solpyeonhan Fixed Deposit' provides a 4.03% interest rate, while KB Kookmin Bank's 'KB Star Fixed Deposit' and Hana Bank's 'Hana Fixed Deposit' each offer an annual maximum interest rate of 4.0%.

Additionally, SC First Bank's 'e-Green Save Deposit' offers an annual maximum interest rate of 4.3%, and Jeonbuk Bank's 'JB 123 Fixed Deposit' offers 4.2%. Jeju Bank's 'J Fixed Deposit' provides up to 4.1%, and DGB Daegu Bank's 'DGB Together Deposit' offers up to 4.05%. Sh Suhyup Bank's 'Sh First Meeting Preferential Deposit' offers up to 4.02%, while BNK Busan Bank's 'The Special Fixed Deposit' and Gwangju Bank's 'Lucky Box Deposit' each provide a 4.0% interest rate. Among internet-only banks, K Bank's 'Code K Fixed Deposit' offers the highest interest rate at 4.0% annually.

With first-tier banks' interest rates surpassing 4%, high-interest products are reemerging in the second-tier financial sector to avoid losing customers. According to the Korea Federation of Savings Banks, the average interest rate for fixed deposits was 4.20% as of the 6th (for 12-month maturity). In the mutual finance sector, Saemaeul Geumgo offers deposit products in the 5% range, and credit unions provide products in the high 4% range.

Financial authorities are closely monitoring this situation. To prevent excessive deposit competition, the financial authorities have decided to abolish the bank bond issuance limit regulation in the fourth quarter of this year. At an executive meeting on the 5th, Financial Supervisory Service Governor Lee Bok-hyun stated, "Regarding the possibility of money movement due to the concentration of year-end fixed deposit maturities, liquidity risk has significantly improved through prior liquidity securing and maturity dispersion inducement," but also urged, "Conduct stress tests assuming severe crisis situations to re-examine funding plans and supervise to prevent high-interest funding for asset competition."

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