"Savings Banks Are Perfect for New Year's Money Savings"

Savings Banks Offer Higher Deposit Interest Rates Than Banks
Deposits Up to 50 Million Won Are Protected

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] If you are looking for a place to put the New Year's money you received during the Lunar New Year holiday, how about putting it into a savings bank installment savings product that offers relatively higher interest rates and easier preferential rates than commercial banks? Savings banks also guarantee principal and interest up to 50 million KRW per person through the Deposit Insurance Corporation, just like banks, so you can rest assured.

If you mainly use a check card, Welcome Savings Bank's 'Welcome Change Collection Installment Savings' product is a good choice. After using your check card, amounts less than 10,000 KRW or 1,000 KRW can be frequently deposited into the savings account. It offers a high interest rate of up to 3.0% per annum.

In particular, it is perfect as an educational product to help parents remind their children that even small change is important.

OK Savings Bank offers the 'OK Mid-term Cancellation OK Installment Savings' product with an interest rate of 1.6%. As the name suggests, it provides 1.6% interest even if you do not maintain the account until maturity. It is suitable for children who find it difficult to save for a year by encouraging the habit of saving for relatively short periods like 3 or 6 months.

Also, if financial education for children is combined with having a pet, it’s a win-win. JT Chin-ae Savings Bank offers the 'JT Jjeompi Plus Regular Installment Savings' product for customers who have pets. If you submit a photo taken with your pet, you receive a high interest rate of 3.1%.

SBI Savings Bank also offers the 'SBI Star Pet Installment Savings' product with an interest rate of up to 3.5%. For this product, submitting a photo taken with your pet and setting up automatic transfers from an SBI Savings Bank free deposit and withdrawal account provides a base rate of 2.6% plus a preferential interest rate of 0.9 percentage points.

Parents raising children under the age of 10 may consider Welcome Savings Bank's 'Welcome I Love Kids Regular Installment Savings' product. This installment savings offers up to 4% interest, and if you apply for automatic transfers through a deposit and withdrawal account and make at least 8 actual transfers, a preferential interest rate of 1 percentage point is granted. Pregnant women can also join by submitting a pregnancy confirmation certificate.

Check cards issued by savings banks also attract attention by offering high benefits.

According to the industry, the check card issued by SBI Savings Bank partners with KakaoPay, NaverPay, and Payco, giving 2% cashback on payment amounts. Benefits are provided regardless of the previous month's performance.

Welcome Savings Bank's check card offers a basic discount rate of 0.2%. If the balance in the linked free deposit and withdrawal account is 500,000 KRW or more, the discount rate increases to 0.5%. There is no limit on the discount amount based on usage. Even if you spend 100 million KRW, you can receive a 0.2% or 0.5% discount.

These savings banks' check cards also have the advantage of allowing 24-hour withdrawals without fees through ATMs located in department stores, convenience stores, and other places.