Deposit Rates Drop by 0.5%p in Just 3 Weeks, Falling One After Another

[Image source=Yonhap News]

[Asia Economy Reporter Boo Aeri] Interest rates on deposits at major commercial banks have fallen one after another. With a drop of nearly 0.5 percentage points in less than a month, deposit investment enthusiasts are expected to face increasing concerns.

According to the Bankers Association on the 28th, the main fixed deposit products of the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) have all fallen to the 3% range.

The representative deposit products (12 months, as of the 27th) of the five major banks recorded interest rates between 3.6% and 3.85%. At the beginning of this month, the interest rates for these products were around 4.1% to 4.36%. They dropped by 0.5 percentage points in just three weeks. Compared to two months ago in November last year, the decline exceeds 1 percentage point.

Looking at each bank, KB Kookmin Bank’s 'KB Star Fixed Deposit' offers an annual maximum interest rate of 3.68%, Shinhan Bank’s 'Sol Pyeonhan Fixed Deposit' offers up to 3.73%. Woori Bank’s 'WON Plus Deposit' provides 3.79%, Hana Bank’s 'Hana Fixed Deposit' offers up to 3.85%, and NH Nonghyup Bank’s 'NH All One e-Deposit' offers up to 3.60% annually.

However, some internet-only banks, regional banks, and specialized banks offer deposit interest rates in the mid-4% range (based on 12 months).

K Bank’s 'Code K Fixed Deposit' offers up to 4.4%, Kakao Bank’s fixed deposit offers up to 4.5%. DGB Daegu Bank’s 'DGB Together Deposit' provides up to 4.75% annually. Sh Suhyup Bank’s 'Sh First Meeting Preferential Deposit' also offers up to 4.7% annually.