Shinhan and Woori Followed by Hana Raising Deposit Interest Rates... Commercial Banks Offer 4% Savings Interest Rates (Comprehensive)

Shinhan and Woori Bank to Raise Savings and Deposit Interest Rates from the 17th, Hana Bank from the 18th

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, major commercial banks such as Shinhan, Woori, and Hana are applying increased interest rates on savings and time deposits.

According to the banking sector on the 17th, Hana Bank has decided to sequentially raise the interest rates on a total of 22 deposit products, including savings and time deposits, by up to 0.30 percentage points starting from the 18th. The base interest rates for seven major savings and time deposit products, including 'Geubyeo Hana Monthly Compound Interest Savings', 'Jugaerye Hana Monthly Compound Interest Savings', 'Naemam Savings', and 'Hana Time Deposit', will be increased by 0.25 to 0.30 percentage points.

The remaining 15 savings and time deposit products will see their base interest rates increased by 0.25 percentage points starting from the 20th. For example, the Energy Challenge Savings will have its highest interest rate for a 1-year maturity raised from 4.10% to 4.35%, the Hana Travel Savings will increase from a maximum of 2.70% to 2.95%, and the Hana OneQ Savings will rise from a maximum of 2.60% to 2.85%, each with a 0.25 percentage point increase in the top interest rate.

A Hana Bank official stated, "In line with the Bank of Korea’s base rate hike, we decided to quickly raise deposit interest rates to alleviate uncertainty for savings customers and to help our clients grow their assets."

Earlier, Shinhan Bank reflected the market interest rate rise and the Bank of Korea’s base rate increase by raising savings and time deposit interest rates starting today. Interest rates on 36 types of fixed and installment savings deposits were increased by up to 0.40 percentage points.

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

A Shinhan Bank official said, "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 products and services to ensure safe asset management for our customers."

Woori Bank also raised interest rates on 18 types of time deposits and 20 types of savings deposits by 0.1 to 0.3 percentage points starting today. The ‘Super Time Deposit’ interest rate increased from a maximum annual rate of 1.45% to 1.7%, the ‘WON Savings’ rose from 2.5% to 2.6%, and the ‘Eussek (ESG) Savings’ product increased from 2.05% to 2.35%.

Other commercial banks such as KB Kookmin and NH Nonghyup are also reviewing interest rate hikes on savings and time deposits, reflecting the Bank of Korea’s base rate increase and market interest rate trends, and are currently discussing specific increase levels. 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.