Kookmin Bank Raises Savings and Deposit Interest Rates by up to 0.4%P... All Four Major Banks Adjust Rates

Reflection of Bank of Korea Base Rate Hike

[Asia Economy Reporter Park Sun-mi] Following last week's decision by the Bank of Korea to raise the base interest rate, KB Kookmin Bank increased the interest rates on its deposit products by up to 0.40 percentage points, resulting in all four major commercial banks applying the increased interest rates on savings and time deposits.

On the 19th, Kookmin Bank announced that it will raise the interest rates on 17 types of time and marketable deposits, including the Kookmin Super Time Deposit, and 20 types of installment savings, including the KB Dugundugun Travel Savings, by up to 0.40 percentage points starting from the 20th.

For KB Kookmin Bank's non-face-to-face exclusive product, the KB Companion Happiness Savings, the highest interest rate for a 3-year term will change to an annual 3.35%, and the KB Double Moa Deposit will change to a maximum annual rate of 2.05% for a 1-year term. In particular, KB Kookmin Bank will raise the interest rates of the representative universal products that offer various preferential rates based on transaction performance: the KB Kookmin ONE Savings (fixed installment type) by 0.4 percentage points and the KB My Fit Savings, targeted at young adults starting their careers, by 0.3 percentage points.

A KB Kookmin Bank official stated, “We decided to raise deposit interest rates reflecting the Bank of Korea’s base rate hike and the rise in market interest rates,” adding, “We plan to continuously provide products and services that can help KB Kookmin Bank customers with asset formation and financial management.”

Earlier, Hana Bank sequentially raised the interest rates on a total of 22 deposit products, including savings and time deposits, by up to 0.30 percentage points starting the previous day. The base interest rates of seven major savings and time deposit products such as 'Salary Hana Monthly Compound Interest Savings,' 'Main Transaction Hana Monthly Compound Interest Savings,' 'My Mind Savings,' and 'Hana Time Deposit' were increased by 0.25 to 0.30 percentage points. The base interest rates of the remaining 15 savings and time deposit products will be raised by 0.25 percentage points starting from the 20th.

For the Energy Challenge Savings, the highest interest rate for a 1-year term was raised from 4.10% to 4.35%, for the Hana Travel Savings from 2.70% to 2.95%, and for the Hana OneQ Savings from 2.60% to 2.85%, each increasing by 0.25 percentage points.

Shinhan Bank also raised the interest rates on 36 types of time and installment savings by up to 0.40 percentage points. The representative product, ‘Hello, Nice to Meet You Savings,’ was raised to a maximum annual rate of 4.4% for a 1-year term, and the Shinhan Merchant Swing Savings, a product designed to help self-employed individuals save a lump sum, was raised to a maximum annual rate of 3.0% for a 1-year term. Additionally, the interest rate on the 1-year Shinhan My Home Savings was increased by 0.4 percentage points to a maximum of 2.6%. The interest rate on the 5-year Future Planning Crevasse Pension Deposit for senior customers was also raised by 0.3 percentage points to an annual 2.15%.

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