[New Interest Rate Nomad①]
Annual 7% High-Interest Savings and Deposit Products Appear One After Another
Dozens Line Up with Mats and Folding Chairs
Disappointment After Missing First-Come, First-Served Opportunity
Sometimes Lucky to Receive Transferred Number Tickets
[Asia Economy Anyang·Guro=Reporter Yu Jehun] "I have been waiting since 4 a.m. today. I heard that a savings product with 7% interest was launched, so I came out at 8 a.m. yesterday on my parents' recommendation, but the first 20 people were already full, so I was disappointed. I heard that the first person came out at 5 a.m., so I came out even earlier today."
On the morning of the 12th at 6 a.m., university student Ahn Sumin (20, female, pseudonym), whom we met in front of the Dongan Saemaeul Geumgo Bisan branch in Anyang, Gyeonggi Province, was sitting on the street in front of the store, fanning herself repeatedly as she said this. A friend who is also challenging a "retry" to sign up for the 7% annual interest fixed savings product with Ahn said with a smile, "I am confident in waiting."
As interest rates rise day by day, the movement of 'interest rate nomads' who follow special savings and deposit products is accelerating. The Bank of Korea implemented a so-called big step by raising the base rate by 0.5 percentage points (p) on the 13th, and their movements are expected to become even more agile at least until the end of this year.
100 People a Day Buying 7% Fixed Savings Product
At the Saemaeul Geumgo Bisan branch, about 10 people were waiting even though it was shortly after dawn. It was about three hours before the opening time when number tickets were distributed. Most were in their 20s and 30s, the target group for this special product sale, and people in their 50s and 60s who lined up on behalf of their children who find it hard to wake up early were also noticeable. They brought folding chairs and cushions, anticipating a long wait.
The reason why five Dongan Saemaeul Geumgo branches are crowded is that they are selling fixed savings products with an interest rate of 7%. Since the 7th, this credit union has been selling a fixed savings product with an annual interest rate of 7% (12 months, limit of 700,000 KRW) to 700 people on a first-come, first-served basis for seven days, targeting MZ generation (Millennials + Gen Z) aged 20-39 living in Anyang City, to commemorate reaching 700 billion KRW in deposits. It is very competitive because only 100 people are accepted daily on a first-come, first-served basis, and aside from age and residence, there are no other conditions.
▲At 9 a.m. on the 12th, customers are waiting in front of Saemaeul Geumgo in Daerim-dong, Yeongdeungpo-gu, Seoul to open savings accounts.
Park Euicheol (37, pseudonym), who even took a day off to sign up for the product, said, "I don't do cryptocurrency, and I operate stocks with a small amount, but I am not really seeing much profit," adding, "So naturally, I am interested in savings products that offer high interest rates."
A Dongan Saemaeul Geumgo official who was handing out ice water and fans to waiting customers said, "This event was prepared to actively attract the MZ generation, who have low usage rates of the credit union," and added, "On the first day, lines started forming around 6 a.m., but as word spread through financial cafes, people now line up from 4 a.m."
High-Interest Savings Limit Reaches 2 Million KRW, Consumers Flock from All Over Causing a Frenzy
At 9 a.m. the same day, as soon as the Saemaeul Geumgo in Daerim-dong, Yeongdeungpo-gu, Seoul opened, an 'open run' began. About 70 customers were waiting as if surrounding the building and rushed in all at once. This branch has been selling a fixed savings product with an annual interest rate of 6% (12 months, 24 months) since the 1st. Except that signing up is only possible in person, the conditions are only automatic transfer and check card issuance, so there are few restrictions. Above all, the monthly deposit limit reaches 2 million KRW, attracting interest rate nomads.
The distribution of number tickets (first 50 people) was completed three minutes after opening, at 9:03 a.m. A man in his 50s who failed to get a number ticket said, "I came from Incheon counting the days, but I was frustrated to miss it right in front of me," and left. There was also a lucky customer. Ms. Lee Minja (58, female), who came from Geumcheon-gu, Seoul, missed getting a number ticket and was about to go home disappointed when she received a number ticket from a woman in her 20s who had to leave urgently. Ms. Lee said, "I feel like I hit the jackpot," and added, "I offered to line up for her tomorrow out of apology, but she firmly refused."
A Daerim-dong Saemaeul Geumgo official explained, "We initially promoted through text messages targeting local residents, and there were no problems for the first three or four days, but at some point, word spread, and consumers from all over flocked here, causing a frenzy," adding, "We started with a limit of 30 billion KRW, which will soon be exhausted, and the special product sales are expected to end at a limit of about 50 to 60 billion KRW."
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