[Asia Economy Reporter Kiho Sung] Internet-only bank KakaoBank is raising interest rates on savings and time deposits. KakaoBank announced on the 7th that it has decided to increase the basic interest rates on savings and time deposits by up to 0.40 percentage points starting from the 8th. The revised rates will apply to new subscriptions from the 8th.
Accordingly, the fixed deposit for a 1-year maturity will increase by 0.30 percentage points to an annual rate of 1.80%. The flexible savings deposit will rise from 1.60% to 1.90% annually. The longer the maturity, the greater the interest rate increase. The 3-year fixed deposit increase is 0.40 percentage points. For flexible savings deposits, if automatic transfer is applied, a preferential interest rate of 0.20 percentage points is provided. Including the preferential rate, the 1-year flexible savings deposit is 2.10% annually.
The 26-week savings deposit will increase by 0.20 percentage points. If automatic transfer is successful for 26 weeks, a preferential rate of 0.50 percentage points is applied, resulting in a maximum annual interest rate of 2.20%.
The basic interest rate for Safe Box also rises by 0.20 percentage points, providing an annual interest rate of 1.00% even for a one-day deposit. Safe Box allows easy separation and management of balances within the account as a safe. The maximum storage limit is 100 million KRW, and one Safe Box can be opened per deposit and withdrawal account.
The piggy bank feature, which automatically saves spare change within the account up to a maximum of 100,000 KRW, will increase from the existing 2.00% to 3.00%.
A KakaoBank official said, "We raised the interest rates on savings and time deposits in response to the base interest rate hike," adding, "We will provide customers with competitive deposit interest rates."
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