Deposit Rates Rising Again... Commercial Banks Also Reach 4% Range

As bank deposit interest rates rise again, more people are seeking savings and fixed deposit products. The balance of fixed savings and deposits at the five major commercial banks increased by more than 11 trillion won in just one month, and high-interest special savings promotions at mutual finance institutions such as Saemaeul Geumgo have also been sold out.

According to the Bankers Association on the 12th, the interest rates for major fixed deposit products at the five major banks?KB Kookmin, Shinhan, Hana, NH Nonghyup, and others?are at the 3.65~3.85% level (based on 12 months), approaching the 4% range.

Products with interest rates exceeding 4% are also emerging one after another. For example, Woori Bank's 'Woori First Transaction Preferential Fixed Deposit' offers an annual maximum interest rate of 4.10% if preferential conditions are met. SC First Bank's 'e-Green Save Deposit' offers up to 4.1% annually, BNK Busan Bank's 'The Special Fixed Deposit', and Sh Suhyup Bank's 'Sh First Meeting Preferential Deposit' provide annual maximum interest rates of 4.0% and 4.02%, respectively.

As banks reintroduce high-interest products, deposit balances have also increased significantly. Last month, the fixed deposit balance at the five major banks reached 832.9812 trillion won, an increase of 10.707 trillion won compared to the previous month (822.2742 trillion won), maintaining a growth trend for four consecutive months. Fixed savings also rose by 1.1679 trillion won from 40.0841 trillion won to 41.252 trillion won.

As commercial banks offer higher interest rates, savings banks are also raising their rates. According to the Korea Federation of Savings Banks, the average interest rate for one-year fixed deposits at 79 savings banks was 4.06% as of the previous day. Additionally, at Saemaeul Geumgo, some branches offer special savings promotions with rates up to 10% (for 12 months or longer). However, preferential conditions such as in-person subscription and membership in mutual aid associations must be confirmed. A mutual finance sector official said, "As the maturity dates of special promotions started last year approach, some cooperatives are conducting new special promotions, leading to an increase in high-interest products."