[1mmGeumyungTalk] "Which is the Best Group Account for Our Meeting?"

High Interest 'K Bank' for Large Savings
Toss Bank and Hana Bank Offer Cashback for Frequent Gatherings
Kakao Bank Highlights KakaoTalk Convenience

Group accounts that can collect membership fees for club meetings, families, and other group gatherings are being launched not only by internet banks but also by commercial and regional banks. With various benefits offered by each bank, consumers find it easier to choose group accounts that suit the characteristics of their gatherings.

‘K Bank’ Offers Preferential Interest Rates per Member for Large Sums Needed for Overseas Travel

A 30-year-old office worker, Mr. A, plans to go on a summer vacation to Vietnam with five university friends. This year, instead of meeting frequently, they decided to save money and travel abroad. They plan to save about 7 million KRW over five months so that each person can use 1.4 million KRW.

There is a group account designed for people like Mr. A who want to save a large sum for travel. The K Bank group account’s “Group Fee Plus” feature increases the interest rate as more members join. The basic interest rate is 2.0% per annum, and if the total target amount is fully collected, an interest rate of 3.0% per annum is provided. Additionally, if each member reaches their individual target amount, a preferential interest rate of 0.5% per annum is added per person. Up to 10 members can participate, allowing for a maximum interest rate of 10% per annum. For example, if five people including Mr. A save travel expenses together, each person needs to save 63,000 KRW once a week for 22 weeks. When the target amount of 7 million KRW is reached, they will receive a final interest rate of 7.5% per annum.

The target date, saving frequency, and target amount can be set as desired. The target date can be set between 30 and 200 days. The saving frequency can be set to a specific day of the week or the same date each month. The target amount can be set up to 10 million KRW.

Also, the Group Fee Plus feature can be set up to five times per group account. This means that when collecting congratulatory money within the group, members excluding the person getting married can set up Group Fee Plus to collect the target amount. When saving for vacation expenses, the funds can be divided according to purpose, such as airfare and expenses during the trip.

If Meetings Are Frequent, ‘Toss Bank’ and ‘Hana Bank’ Are Ideal with Cashback Benefits

If you collect membership fees and use them every time you meet, it is advantageous to open a group account at banks that offer cashback benefits. Toss Bank provides a cashback of 500 KRW per transaction for payments over 10,000 KRW at dining (restaurants and pubs), entertainment (karaoke rooms, bowling alleys, billiard halls, golf courses, golf practice ranges), and shopping (E-Mart, E-Mart Traders, Nonghyup Hanaro Mart). For payments under 10,000 KRW, 100 KRW cashback per transaction is applied. It is also good to use this as a couple’s account. The main screen of the account can be customized with a desired photo. Comments can be left on deposit/withdrawal or card payment histories. Toss Bank explained that about 50% of users actually use this group account as a couple’s account. Hana Bank also offers 3-20% cashback (up to 10,000 KRW per month) when using a group-specific check card at restaurants, coffee shops, convenience stores, and more.

If There Is Frequent Communication Among Members, Convenience Is Higher with Kakao Bank

Kakao Bank was the first in the financial sector to launch a group account service in 2018. As of December last year, the number of active users of Kakao Bank group accounts reached 9.75 million, nearing 10 million. Kakao Bank’s most emphasized feature is ‘convenience’ through KakaoTalk. Members can be easily invited via KakaoTalk. Even those without a Kakao Bank account can easily check balances and transaction histories. When the group leader presses the ‘Set Membership Fee Rules’ button to set the fee amount and payment dates, notifications are sent. Starting from the 16th, a ‘Group Bulletin Board’ will be added within the group account service, allowing members to post and share content. A Kakao Bank representative said, “By allowing images in posts and increasing consumer participation, we can strengthen the communication function of group accounts.”

Regional banks have also started offering group account services, and competition to attract consumers is expected to intensify. DGB Daegu Bank launched the group-exclusive account ‘iM Group Account’ on the 12th, offering up to 2.01% interest. It is a deposit product with free withdrawals and deposits, sold only through the IM Bank application. Preferential interest rates are provided based on the number of members applying for automatic membership fee transfers and the deposit balance, applying the highest interest rate.