Starting Today, Bank Savings and Time Deposit Interest Rates Increase One After Another... Up to 0.4%p Rise

Interest Rate Increase Up to 0.4%p by Product

On the 25th, as the Bank of Korea raised the base interest rate from 0.75% to 1.0% per annum, commercial banks began increasing interest rates on savings and time deposits. The photo shows a notice related to savings and time deposits posted on the exterior wall of a bank in downtown Seoul on the same day. Photo by Moon Honam munonam@

[Asia Economy Reporter Park Sun-mi] Following last week’s decision by the Bank of Korea to raise the base interest rate, commercial banks such as Shinhan and Woori are applying increased interest rates on savings and time deposits.

According to the banking sector on the 17th, Shinhan Bank reflected the increase in savings and time deposit interest rates starting today in line with the rise in market interest rates and the Bank of Korea’s base rate hike. Interest rates on 36 types of fixed deposits and installment savings were raised by up to 0.40 percentage points.

The representative product, 'Annyeong, Bangawo Savings,' now offers a maximum annual interest rate of 4.4% for a 1-year term, and the Shinhan Franchise Swing Savings, a product designed to help self-employed individuals accumulate lump sums, was raised to a maximum annual rate of 3.0% for a 1-year term. Additionally, the 1-year Shinhan My Home Savings interest rate was increased by 0.4 percentage points to a maximum of 2.6%. For senior customers, the 5-year Future Planning Crevasse Pension Deposit interest rate was also raised by 0.3 percentage points to an annual rate of 2.15%.

A Shinhan Bank official stated, “In response to the Bank of Korea’s base rate hike and rising market interest rates, we quickly raised savings and time deposit rates for our customers,” adding, “Shinhan Bank will continue to provide various savings and time deposit products and services to ensure safe asset management for our customers.”

Woori Bank also raised interest rates on 18 fixed deposit products and 20 savings products by 0.1 to 0.3 percentage points starting today. The 'Super Fixed Deposit' interest rate increased from a maximum annual rate of 1.45% to 1.7%, the 'WON Savings' from 2.5% to 2.6%, and the 'Eussek (ESG) Savings' product from 2.05% to 2.35%.

A Woori Bank official said, “We promptly raised deposit product interest rates following the base rate hike,” and added, “The long-debated issue of the interest rate gap between deposits and loans is expected to be partially resolved.”

Other commercial banks such as KB Kookmin, Hana, and NongHyup are also reviewing interest rate hikes on savings and time deposits by reflecting the Bank of Korea’s base rate increase and market interest rate trends. They are currently discussing specific increase rates. Since the banking sector raised savings and time deposit interest rates by up to about 0.40 percentage points during the previous base rate hike, a similar increase is expected this time as well.