[Practical Finance] Say Goodbye to Tiny Interest, Searching Far and Wide for High Interest Rates

Highest Interest Rate Products by Bank During Rising Interest Rates

More Options Available with Rising Rates
Carefully Check Preferential Rates and Requirements

[Asia Economy Reporters Sim Nayoung and Song Seungseop] # Min Haneul, a worker in his 40s, visited a bank near his office during lunch break right after the Lunar New Year holiday. After suffering significant losses in the January stock market crash, he spent the entire holiday seeking advice on investment strategies from family and friends. The conclusion Min reached was to choose savings and fixed deposit products. He decided to put about half of his current funds into a fixed deposit account earning 2% annual interest.

# Lee Seongmi, a housewife in her 30s, has also been carefully reviewing pamphlets of savings and fixed deposit products she picked up from banks whenever she has free time. "I needed money urgently due to a family matter, but since the stock prices had dropped significantly, I couldn't withdraw money from my stocks," she said. "I solved it by opening a negative balance account for now, but I think it would be good to open a savings account that offers preferential interest rates when rates are high."

As the stock and virtual asset markets fluctuate and bank interest rates rise, more people are turning their attention to bank savings and fixed deposit products. Besides the perception of savings as ‘safe assets,’ choosing products that meet specific conditions to receive the highest interest rates can be quite rewarding. According to the five major commercial banks (KB Kookmin, Shinhan, Woori, Hana, NH Nonghyup) on the 17th, the highest interest rate for bank fixed deposits has exceeded 2% annually, and savings accounts have surpassed 4%. There are even savings products offering up to 7% annual interest.

Banks Flood Market with High-Interest Savings and Deposits
2% Interest on Deposits, 4% on Savings Offers Attractive Returns
Savings Products Offering Up to 7% Annual Interest Appear

KB Kookmin Bank’s online product ‘KB Star Fixed Deposit’ offers a maximum annual interest rate of 2.13% for a 1-year term. The ‘KB Double Moa Deposit,’ available to those aged 50 and above, allows lump-sum deposits between 10 million and 40 million KRW with a top interest rate of 2.05%. Savings accounts offer even higher rates. The ‘KB My Fit Savings,’ targeted at young professionals, offers a maximum 1-year maturity interest rate of 3.50%. For pet owners, the ‘KB Companion Happiness Savings’ offers a maximum interest rate of 3.35%, making it worth considering.

Shinhan Bank’s flagship product, ‘Hello Nice to Meet You Savings,’ offers a top interest rate of 4.40% annually. Customers who have not subscribed to any Shinhan Bank savings products in the past year, receive their salary through Shinhan Bank, and open a Shinhan card can qualify for preferential interest rates. The ‘Beautiful Courage Savings,’ which rewards customers for environmental actions such as pledging to use reusable cups, offers a maximum interest rate of 2.8%.

Woori Bank’s WON Deposit offers a basic interest rate of 0.8% for 1 year, plus an additional basic interest rate at maturity, totaling 1.6% annually. The ‘WON Savings’ offers a basic interest rate of 2.4% plus a preferential rate of 0.2%, allowing a maximum interest rate of 2.6%. The ‘Woori Magic Savings by Lotte Card,’ which provides high interest rates based on Woori Bank transaction records and Lotte Card usage, offers up to 7% annual interest.

Hana Bank’s ‘Salary Hana Monthly Compound Interest Savings’ offers a special interest rate of up to 1.3% annually for young workers, and with preferential rates applied, interest can reach up to 4%. The ‘Hana Fixed Deposit’ product offers a maximum interest rate of 1.9% for a 1-year term.

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@

NH Nonghyup also sets preferential interest rates above 2% for its representative savings products. The ‘NH Salary Monthly Compound Interest Savings’ is a monthly compound interest savings product exclusively for workers, with interest rates preferentially applied based on salary transfers and cross-transactions. The maximum interest rate for 1 year is 2.55%. The e-Preferential Interest Savings is a representative non-face-to-face savings product with a maximum interest rate of around 2.45% for 1 year.

When subscribing to high-interest products, it is important to carefully check whether you can meet the preferential interest rate conditions. If customers fail to meet the bank’s requirements, the actual interest they receive may be lower than expected. A representative from a commercial bank explained, "Depending on the product, the preferential interest rate period may not cover the entire deposit period but only part of it, so customers should be aware of this."

Secondary Financial Institutions Offer Interest Rates Up to 10%
Targeting Low Credit and Socially Vulnerable Groups
Various Preferential Savings Products Launched

By subscribing to savings and deposit products from secondary financial institutions, customers can enjoy interest benefits of up to 10% annually. Joheung Savings Bank’s ‘Open Banking Savings’ offers a maximum interest rate of 10% for a 1-year fixed installment savings plan. The basic interest rate is low at 2.1%, but the preferential interest rate is 7.9%. Customers need to join Joheung Savings Bank’s Open Banking, issue a Lotte affiliated card, and spend 300,000 KRW within 3 months. Dream Savings Bank’s Open Banking Savings offers the same maximum 10% interest benefit under similar conditions.

There are also savings products targeting low credit score holders and socially vulnerable groups. Welcome Savings Bank’s ‘Welbang Strong Savings’ increases the interest rate as the credit score decreases. The basic interest rate is 2% annually. If the credit score is 350 or below, an additional 3% preferential rate is applied. Adding a 1% preferential rate for first-time customers at Welcome Savings Bank, customers can enjoy a total savings interest rate of 6%.

KB Savings Bank’s ‘KB Good Nuri Savings’ is available only to basic livelihood security recipients, child-headed households, single-parent family support beneficiaries, low-income groups aged 65 and above, and disability pension recipients. The basic interest rate is relatively high at 4.50% annually. The preferential interest rate is 0.5%, which is easy to qualify for by signing up through internet or mobile banking. The monthly maximum deposit limit is 300,000 KRW.

For those looking for financial products with high subscription limits, OK Savings Bank’s ‘OK Eutshot Fixed Deposit’ is available. The subscription amount ranges from 100,000 KRW to 10 billion KRW. The interest rate is about 2.5% annually. With a short 6-month term and fixed interest rate, it is suitable for managing short-term funds strategically.

Mutual finance institutions also offer various high-interest savings products. The ‘Tetris Savings’ product offers a preferential interest rate of 1.2%. By finding individual credit unions that offer high interest rates and meeting their preferential interest conditions, customers can earn more interest than with commercial bank financial products.