The Golden Age of Parking Accounts... Virtual Asset Parking Accounts Also Catch Attention

Delio Offers 3% Annual Compound Interest on Bitcoin, Ethereum, and Ripple with 'Delio Bank'

[Asia Economy Reporter Hyungsoo Park] The world's largest cryptocurrency Bitcoin and Ethereum, which ranks second in market capitalization, are continuing their rebound trend. As optimistic forecasts gain momentum that Bitcoin prices may have bottomed out and entered an upward phase, virtual asset parking accounts are attracting attention.

Recently, parking accounts have emerged as an investment alternative due to their free deposit and withdrawal features and interest rate benefits. Like briefly parking a car, even depositing money for just one day offers higher interest rates than regular accounts. Deposits and withdrawals are available at any time. As volatility in the stock and virtual asset markets increases, standby funds are growing, and parking accounts have become popular because they offer high interest benefits without locking assets for a long time.

Crypto bank Delio recently launched the ‘Delio Bank’ service. It pays a compound annual interest rate of 3% daily without any conditions on Bitcoin, Ethereum, and Ripple. Deposits and withdrawals of virtual assets are also free. It enhances customer convenience by linking with various existing virtual asset financial services such as lending, custody, payment, and management.

Delio is gradually considering expanding the scope of virtual asset applications. As volatility in virtual assets increases, the service will be strengthened so that investors with medium- to short-term investment tendencies can actively utilize it.

Parking accounts are also popular in the general deposit market. During the base interest rate hike period, commercial banks are raising deposit and savings interest rates to attract market funds. As financial consumers increasingly switch their main banks to those offering higher interest rates, competition among commercial banks for interest rates is fierce.

The average interest rate for existing parking accounts was about 1.2% per annum, but since the launch of the internet bank Toss Bank, it has recently risen to 2%. When calculated with daily compound interest, the interest grows rapidly. Interest is added the next day on the principal plus the previously accrued interest. Although the difference in existing interest rates is not large, the longer the deposit period, the wider the interest rate gap becomes.

An industry official explained, "The balance of parking account deposits has been steadily increasing recently," adding, "Since the interest rate is higher than that of the main bank used even for just one day, the usage rate of parking accounts is relatively high."

Parking accounts are rapidly appearing in various forms, mainly at savings banks. Although there are deposit limits, the number of parking accounts offering higher interest benefits than regular deposit accounts is increasing.