[Practical Finance] How to Earn Over 5% Annual High Interest... Found Within Partnership Products Among Financial Companies

First-Time Customers and Card Usage Requirements
Membership Conditions Apply but Benefits Are Attractive

[Asia Economy Reporter Ki Ha-young] As the Bank of Korea lowered the base interest rate to an all-time low of 0.5%, the interest rates on savings and time deposits at commercial banks are also falling across the board. Even if you deposit 10 million KRW in a bank for one year, it is difficult to earn 100,000 KRW in interest. However, among products offered through partnerships between financial companies such as credit card companies, you can find high-interest products with rates exceeding 5%. Although the subscription procedures such as being a first-time customer, meeting card usage requirements, or signing up via mobile web or application (app) may be cumbersome, if you plan to open a new account or get a new card, you can relatively easily receive preferential conditions.

According to the financial sector on the 1st, Shinhan Card recently launched a time deposit product offering an effective maximum annual interest rate of 3.3% in collaboration with 11st and Shinhan Bank. If the time deposit is maintained until maturity, a basic interest rate of 0.8% per annum is applied, and customers who subscribe to Shinhan Bank's open banking service can receive 1.1% per annum, which includes a preferential interest rate of 0.3% added to the basic rate. If the conditions for using the 11st Shinhan Card (credit) are met, an additional reward with a preferential interest rate of 2.2% per annum is possible. The card usage reward applies when first-time 11st Shinhan Card (credit) customers use the card for more than 110,000 KRW during the subscription period. The deposit subscription period is 3 months, and the savings limit ranges from a minimum of 500,000 KRW to a maximum of 3 million KRW.

Additionally, Shinhan Card launched a time installment savings product in partnership with Accuon Savings Bank that offers a maximum annual interest rate of 6.3%. The 'Accuon Savings Bank × Shinhan Card Partnership Special Time Installment Savings' has a basic interest rate of 2.2% per annum. If you agree to join the Accuon membership, an additional 0.1 percentage points are added, and another 0.1 percentage points are added if you subscribe via mobile. If the Shinhan Card usage conditions are met, you can receive up to an additional 3.9 percentage points. Customers who have not used the Shinhan Card (credit) in the six months prior to subscription can apply for the card online and use it for more than 150,000 KRW by the end of October to receive the preferential interest rate of 3.9 percentage points. The subscription period is one year, and the monthly payment amount is up to 300,000 KRW. Sales are limited to the first 20,000 accounts. After receiving the event code on the Shinhan Card website, customers complete the subscription by entering their information and the code on the Accuon Savings Bank app.

Shinhan Financial Group introduced the 'Shinhan Plus Membership Savings,' a combined product among affiliates offering an interest rate of up to 8.3% per annum. This product is linked to Shinhan Financial's premium customer membership platform. It provides a basic interest rate of 1.2% per annum, with an additional 0.3% for automatic transfer linkage, and another 0.3% for customers who have not held a savings account in the past three months, offering a maximum interest rate of 1.8%. Furthermore, if customers meet transaction conditions through other Shinhan Financial subsidiaries such as joining the Shinhan Plus Membership, newly using a Shinhan check card (monthly usage of 300,000 KRW or more for over 3 months), making their first transaction with Shinhan Investment Corp., or subscribing to Shinhan Life pension savings insurance, they receive rewards equivalent to an annual interest rate of 6.5% in the form of My Shinhan Points or cashback. This is a 6-month maturity flexible installment savings product with a monthly payment limit of 300,000 KRW and a cap of 500,000 accounts.

Samsung Card is currently selling a limited 'Becoming Rich Savings Set' in partnership with SC First Bank, offering a 7% annual benefit. It provides a basic interest rate of 1.6% per annum plus an additional cashback benefit of 5.4% per annum. The cashback benefit is available to new Samsung Card customers or those who have not used the card in the past six months, who issue the SC First Bank partnership Samsung Card and use it for more than 300,000 KRW monthly for one year after subscribing to the Becoming Rich Savings Set. The savings are regular installment type with a 12-month subscription period, and the monthly payment amount can be selected between 100,000 KRW or 250,000 KRW. Only 4,000 accounts will be sold until August 14.

Samsung Card also launched the 'MG Gadeuk Time Installment Savings' product in partnership with MG Saemaeul Geumgo, offering a maximum annual interest rate of 4.5%. The basic interest rate ranges from 1% to 2% per annum, but preferential interest rates of up to 2.5% per annum can be added depending on Samsung Card usage performance. The subscription period is 12 months, and the payment amount is up to 300,000 KRW per month. Woori Card also offers the same product in partnership with MG Saemaeul Geumgo.

Hyundai Card, in collaboration with Woori Bank, introduced the 'Woori Magic Savings by Hyundai Card,' offering a maximum annual interest rate of 5.7%. The interest rate consists of a basic rate of 1.7% per annum, a preferential interest rate of up to 0.5 percentage points, and a special preferential interest rate of up to 3.5 percentage points, totaling up to 5.7%. First-time customers of Woori Bank or those who meet the salary (or pension) receipt conditions through a Woori Bank account receive 0.5 percentage points per annum. The special preferential interest rate is provided based on Hyundai Card usage performance, with up to 3.5 percentage points per annum given when Hyundai Card usage and automatic transfer conditions are met. New Hyundai Card customers who set up at least one automatic transfer with Hyundai Card and use their credit card for more than 6 million KRW by the end of the month before the maturity of the savings can receive this benefit. The subscription period is 12 months, and the monthly payment limit is up to 500,000 KRW.