High-Interest Savings Return... 4% Rates Appear at 4 Major Banks

[Image source=Yonhap News]

As the maturity dates approach for high-interest savings and deposit products launched by banks in the second half of last year, high-interest deposit products are reappearing one after another. It is not difficult to find deposits with interest rates in the 4% range even at the four major banks.

According to the Bankers Association disclosure on the 29th, the representative deposit products of KB Kookmin, Shinhan, and Woori Bank all exceeded an annual maximum of 4% (as of the 27th, for 12-month maturity). KB Kookmin Bank's 'KB Star Time Deposit' and Shinhan Bank's 'Solpyeonhan Time Deposit' offer interest rates of 4.05% each, and Woori Bank's 'WON Plus Deposit' provides up to 4.03% annually. Hana Bank's 'Hana Time Deposit' offers up to 3.9% annually, approaching 4%.

In addition, SC First Bank's 'e-Green Save Deposit' and Jeonbuk Bank's 'JB 123 Time Deposit' offer up to 4.2% annually, while Jeju Bank's 'J Time Deposit' provides up to 4.1%. Also, DGB Daegu Bank's 'DGB Together Deposit' offers up to 4.05%, and Sh Suhyup Bank's 'Sh First Meeting Preferential Deposit' provides up to 4.02%. BNK Busan Bank's 'The Special Time Deposit' and Gwangju Bank's 'Lucky Box Deposit' each offer 4.0%. Among internet-only banks, K Bank's 'Code K Time Deposit' offers the highest interest rate at up to 4.0% annually.

As the interest rates of first-tier financial institutions exceed the 4% range, high-interest products are reemerging in the second-tier financial sector to avoid losing customers. According to the Korea Federation of Savings Banks, the average interest rate for time deposits was around 4.19% as of the 27th. In the mutual finance sector, Saemaeul Geumgo offers deposit products in the 5% range, and ShinHyup offers products in the high 4% range.

However, authorities are closely monitoring the situation, warning that the deposit competition seen last year could negatively impact financial stability. Lee Bok-hyun, Governor of the Financial Supervisory Service, recently stated, "The competition to retain high-interest deposits handled in the fourth quarter of last year could act as an unnecessary market instability factor, raising concerns about short- and long-term funding and loan interest rate increases," and instructed close monitoring of overheating in deposit and loan competition. Furthermore, the Financial Services Commission and related mutual finance departments and institutions plan to operate a monitoring system from mid-October to check deposit and interest rate trends to prevent excessive fund-raising competition among mutual finance sectors such as Saemaeul Geumgo, NongHyup, ShinHyup, and Suhyup in the second half of the year.