[Real-Life Finance] The Fading Low-Interest Era... Focus on High-Interest Savings and Time Deposits

Shinhan Bank Offers Up to 4.4% Annual Interest with Preferential Rates
National Credit Union Federation Provides Interest Rates Up to 8%

With the easing of household loan regulations and banks having more room in their household loan balances, banks are collectively loosening their lending restrictions. Along with this, banks sensitive to market interest rates are raising not only deposit rates but also installment savings rates. As the unprecedented low-interest-rate era comes to an end, it is necessary to pay attention to the gradually emerging high-interest-rate deposit products.

K Bank held a special fixed deposit promotion offering up to 2.5% annual interest last month to celebrate its 5th anniversary. Of the total sales limit of 500 billion KRW, up to 70 billion KRW poured in on a single day, and the entire amount was sold out in just two weeks. Toss Bank’s Toss Bank Account (demand deposit) pays interest of 2% annually up to a maximum limit of 100 million KRW. Since the 16th of last month, customers can receive interest daily. As a result, the number of customers increased to 2.35 million by the end of last month.

NH Nonghyup Bank recently launched the ‘NH Happier Together Deposit’ to commemorate its 10th anniversary. Without any conditions, a special preferential interest rate of 0.70 percentage points is added, allowing customers to receive up to 2.05% annual interest. The subscription period is one year, with only one account per person allowed, and sales are limited to 300 billion KRW until the 30th of this month. Suhyup Bank is also selling the ‘Sh Golden Rich Event Fixed Deposit (4th round)’ product, offering up to 2.25% annual interest.

Looking at installment savings products, even higher interest rates can be found. Shinhan Bank’s ‘Hello Nice to Meet You Installment Savings’ offers up to 4.4% annual interest if all preferential interest conditions are met. KB Kookmin Bank sells the ‘KB My Fit Installment Savings’ with a maximum annual interest rate of 3.5%. It targets those aged 18 to 38, with a base interest rate of 1.9%, and an additional 1.6 percentage points can be earned by meeting preferential interest conditions. In mutual finance, the National Credit Union Federation’s ‘4th Plus Regular Installment Savings’ offers up to 8% annual interest. The base interest rate alone is 2.5%, surpassing general commercial bank installment savings. Additionally, up to 5.5 percentage points of preferential interest is given upon meeting conditions.