[Practical Finance] Missed the Youth Hope Savings? Check Out 'Annual 8% Range' Mutual Finance and Internet Bank Savings and Deposits

With 2.9 million people flocking to the Youth Hope Savings Account offering an annual interest rate of up to 10%, intense competition has unfolded. If you missed out on the Youth Hope Savings Account, savings and deposit products from mutual finance institutions, internet-only banks, and savings banks are also worth noting. However, since preferential conditions are more stringent than those of the Youth Hope Savings Account, careful examination is necessary. Savings banks and mutual finance institutions in the secondary financial sector also provide deposit protection up to 50 million KRW per person, similar to bank deposits.

According to the financial sector on the 17th, the National Credit Union Federation of Korea launched the 4th Plus Fixed Savings Account linked with Shinhan Card, offering an annual interest rate of up to 8.0%. It has a 1-year maturity with a monthly payment limit of up to 300,000 KRW, providing a basic annual interest rate of 2.5% plus preferential interest rates up to 5.5% based on certain conditions. Customers can receive a 5% preferential interest rate if they use the Shinhan Card issued through the credit union partnership for a total of 500,000 KRW or more within 6 months or use it at least 4 times with payments of 100,000 KRW or more per month. Additional preferential rates apply for registering automatic transfers from a credit union demand deposit account to the Plus Fixed Savings Account (0.2%), registering the Shinhan Card payment account under the customer's name with the credit union demand deposit account (0.2%), and transferring a salary of 500,000 KRW or more monthly for 3 consecutive months from account opening until 2 months before maturity (0.1%).

Woori Comprehensive Financial’s ‘Woori Comprehensive Financial The Dream Fixed Savings 3’ offers a maximum interest rate of 8.5% by applying a basic rate of 2% plus a preferential rate of 6.5%. Maintaining a CMA Note account balance of 5 million KRW applies 0.5%, 10 million KRW applies 0.8%, and 30 million KRW applies 1.2%. New customers receive an additional 1.5%. Other preferential rates include salary transfer (1.0%), consent to marketing communications (0.5%), CMA check card usage between 2 million and 3 million KRW (0.5%), usage over 3 million KRW (0.8%), and friend referrals (1.5%). The monthly payment limit is 200,000 KRW.

High-interest products from internet-only banks are also worth attention. K Bank’s ‘Hot Deal Savings X Woori Card’ offers an annual interest rate of up to 10% by applying a basic rate of 1.8% plus preferential rates up to 8.2% based on Woori Card usage. The limit is up to 200,000 KRW, and the conditions apply to customers who have no record of using Woori credit cards within 6 months prior to the savings account subscription date. A 0.5% preferential interest rate applies if the product is subscribed within 10 days after opening the first K Bank deposit account or upon consenting to marketing. Depending on the annual usage of the Woori Card, an additional 4.2% to 5.7% interest is added, and an extra 2% is added if automatic transfers for management fees, communication fees, etc., are made via the Woori Card or if public transportation usage is maintained for more than 6 months.

Savings banks are also introducing savings products with interest rates in the 5% range. Welcome Savings Bank launched the ‘Welcome First Transaction Preferential m Fixed Savings’ on the 1st, offering an annual interest rate of up to 5.5%. This product targets customers who are using Welcome Savings Bank for the first time or within one month after their first transaction. It is a 1-year maturity product with a monthly payment limit of up to 200,000 KRW. The basic annual interest rate is 2.7%, with an additional 1.8% applied when making 8 or more savings payments through the Welcome Savings Bank free deposit and withdrawal account, and an additional 1% when maintaining a balance of 500,000 KRW or more in the free deposit and withdrawal account.