Parking Account That Pays Interest Even for Just One Day 'Profitable'
Interest on Parking Accounts Also Rises as Deposit Rates Increase ↑
[Asia Economy Reporter Song Seung-seop] Ahead of Chuseok, deposit products that allow financial consumers to park their surplus funds are gaining attention. Typically, demand increases to temporarily hold bonuses received from companies or remittances exchanged among relatives before the holiday. In the savings bank sector, parking accounts offering higher interest rates than commercial banks and paying interest even for a single day of deposit are being launched one after another.
According to the industry on the 19th, JT Savings Bank offers the ‘JT Jump-up Savings Deposit’ product. The base interest rate is 1.3% per annum (as of the 15th, variable). There are no strict preferential conditions such as deposit period or maintaining balance. Subscription can be made through the Savings Banks Association’s mobile application ‘SB Toktok Plus’. Interest can be earned even if deposited for just one day.
A parking account refers to a deposit product that offers relatively high interest rates even for short-term deposits, similar to briefly parking a car. It is mainly used to utilize idle surplus funds. Since savings banks are protected up to 50 million KRW per person under the ‘Deposit Protection Act,’ funds can be managed wisely depending on the purpose and duration.
SBI Savings Bank provides a ‘Deposit and Withdrawal Account’ through its mobile banking app, Saida Bank. It offers an interest rate of 1.2% per annum without conditions up to 200 million KRW. Interest is calculated from the 1st to the end of each month and paid monthly.
Welcome Savings Bank’s free deposit and withdrawal product, ‘Welcome Non-face-to-face Ordinary Deposit,’ offers 1.3% interest without conditions up to 30 million KRW. Recently, Daeshin Savings Bank even launched a mobile-only ‘The Drigo Deposit and Withdrawal Account’ offering 1.6% interest.
It is also noteworthy that the base deposit interest rates are rising following the Bank of Korea’s base rate hikes. Depositing money in parking accounts with variable interest rates is expected to increase the interest earned as rates rise.
According to disclosure data from the Savings Banks Association, the average interest rate for 12-month fixed deposits at 79 savings banks is 2.21% per annum. Welcome Savings Bank has already raised its 12-month fixed deposit interest rate by 0.25 percentage points. Including a 0.2% preferential rate for non-face-to-face subscriptions, the maximum interest rate can reach 2.6%.
Pepper Savings Bank raised the interest rate on its revolving fixed deposit product by 0.1 percentage points, allowing customers to enjoy interest benefits of 2.42% per annum (compound interest) or 2.4% per annum (simple interest), depending on the interest payment method.
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