Shinhan Bank Raises Savings and Deposit Interest Rates by up to 0.3%P...

NongHyup Bank Plans Up to 0.25%P Increase from September
Foreign Banks Also Considering Following Kookmin, Hana, and Woori Banks

[Asia Economy Reporter Kwangho Lee] Along with the Bank of Korea's base interest rate hike, commercial banks' deposit and savings interest rates are also rising across the board.

On the 30th, according to the Korea Federation of Banks and the banking sector, Shinhan Bank raised its deposit and savings interest rates by 0.2 to 0.3 percentage points.

The 1-year fixed deposit product "Shinhan S Dream Time Deposit" was raised from 0.60% to 0.85%, and the installment savings product "Shinhan S Dream Savings" was raised from 0.80% to 1.05%, both increased by 0.25 percentage points.

NH Nonghyup Bank also plans to raise deposit and savings interest rates by 0.05 to 0.25 percentage points starting from the 1st of next month.

KB Kookmin, Hana, and Woori Banks have also decided to raise deposit and savings interest rates soon and are reviewing their deposit rates.

Foreign banks such as Korea Citibank and SC First Bank also plan to raise deposit interest rates reflecting the base rate hike.

Internet-only bank KakaoBank also intends to raise deposit and savings interest rates this week.

Earlier, K Bank uniformly raised the interest rate of its "CodeK Time Deposit" by 0.2 percentage points across all subscription periods on the 28th.

According to the Bank of Korea's Economic Statistics System, the average interest rate on new fixed deposits at domestic banks has remained in the 0% range since May last year at 1.07% per annum. Last month, it was 0.91% per annum. Also, the average interest rate on new installment savings has stayed in the 1.1% range since July last year, recording 1.14% last month. With this deposit rate hike, both fixed deposits and savings are expected to rise to the low to mid 1% range.

A representative from a commercial bank said, "We are reviewing deposit interest rates considering the Bank of Korea's base rate hike and plan to finalize the increase within this week," adding, "Since there is still a possibility of additional base rate hikes within the year, interest rate adjustments will continue for the time being."