SBI Savings Bank Cider Bank Launches 2.6% Compound Interest Fixed Deposit

[Asia Economy Reporter Song Seung-seop] SBI Savings Bank's financial platform, Cider Bank, announced on the 7th that it has launched a 'Compound Interest Fixed Deposit.'

This product is a variable interest rate type with an applied rate of 2.6%. As of this date, the base interest rate is 2.5% with a preferential rate of 0.1%. The subscription period ranges from 3 to 5 years and can be selected on a monthly basis. The minimum subscription amount is 1 million KRW.

SBI Savings Bank explained that because it uses a compound interest calculation method, it offers a higher interest rate than general fixed deposit products (fixed interest rate). Additionally, this product automatically applies the preferential rate to the fixed deposit interest rate every 12 months, so there is no need to extend the deposit. Even if the deposit account is terminated early after 12 months, the agreed interest rate including the preferential rate is guaranteed.

A representative from SBI Savings Bank stated, “With the base interest rate increase, financial consumers' interest in savings and deposit products is rising. The newly launched product offers a higher interest rate than fixed deposits and eliminates the burden of early termination, reflecting the transaction patterns of deposit customers.”