NongHyup Bank Also Raises Savings and Deposit Interest Rates by 0.4%p... Commercial Banks Increase Rate Hikes One After Another

Expected Increase of 0.25~0.4 Percentage Points on the 1st

[Asia Economy Reporter Kiho Sung] NH Nonghyup Bank is reportedly set to raise its savings and deposit interest rates by 0.25 to 0.4 percentage points starting next month. As a result, all five major commercial banks have increased their savings and deposit interest rates following the Bank of Korea's base rate hike last week.

According to banking sources on the 29th, Nonghyup Bank has internally decided to raise rates by 0.25 to 0.4 percentage points from the 1st of next month and is in the final stages of discussion.

The simultaneous rate hikes by banks were influenced by the Bank of Korea's base rate increase. On the 25th, the Bank of Korea raised the base rate by 0.25 percentage points to 1.00% per annum for the first time in 1 year and 8 months. The Bank of Korea is expected to raise the base rate further next year. Additionally, banks accepted the recent criticism regarding the realism of savings and deposit interest rates.

Woori Bank and Hana Bank raised their savings and deposit interest rates by up to 0.40 percentage points on the 25th, immediately after the Bank of Korea's base rate hike announcement. Hana Bank increased rates by 0.25 to 0.40 percentage points on five installment savings products, including the 'Main Transaction Hana Monthly Compound Interest Savings,' starting from the 26th. From the 29th, interest rates on seven installment savings products and six fixed deposits will also be raised by 0.25 percentage points. Woori Bank also raised savings and deposit interest rates by up to 0.40 percentage points starting from the 26th, increasing rates on 19 fixed deposit and 28 savings products.

Shinhan Bank will raise interest rates on 36 types of fixed deposits and installment savings by up to 0.40 percentage points starting from the 29th. KB Kookmin Bank will also raise interest rates by up to 0.40 percentage points on 17 types of fixed and marketable deposits and 26 types of installment savings, including the 'KB Dugundugun Travel Savings,' starting from the 29th.