Kookmin Bank Lowers Deposit Interest Rate by 0.30%p... Bank Deposit Rate Cuts Begin in Earnest

[Asia Economy Reporter Kangwook Cho] Commercial banks have begun to lower interest rates on savings and time deposits. This follows the Bank of Korea's decision to cut the base rate to a historic low of 0.5% on the 28th of last month.

According to the banking sector on the 2nd, KB Kookmin Bank decided to generally adjust the base interest rates of about 50 deposit products, starting with its flagship product, the 'Kookmin Super Time Deposit.'

The base interest rate applied to the fixed-term deposit product, Kookmin Super Time Deposit, will be lowered by 0.3 percentage points.

For products with maturity interest payments, the interest rate for contracts lasting from 1 month to less than 3 months will decrease from 0.60% to 0.30%, for 3 months to less than 6 months from 0.70% to 0.40%, and for 6 months to less than 1 year from 0.80% to 0.50%. For contracts lasting 1 year to less than 2 years, the rate will drop from 0.90% to 0.60%, for 2 years to less than 3 years from 1.0% to 0.70%, and for 3 years from 1.05% to 0.75%.

Starting from the 5th, 50 products including the installment savings product '280-Day Savings for My Child' will see reduced rates, and from the 8th, the interest rates on demand deposit savings accounts (MMDA) such as 'KB Preferred Savings Account' and 'KB Preferred Corporate Account' will also be lowered.

A KB Kookmin Bank official stated, "We have lowered the interest rates on deposit products reflecting the Bank of Korea's base rate and the actual market interest rates."

Following KB Kookmin Bank, other commercial banks are expected to follow suit in lowering interest rates on deposit products.