"Grab the Special Precious Deposit Offer" 100,000 People Gathered in Two Days [1mm Financial Talk]

As high-interest deposit products become scarce in the banking sector, competition among Yetech (deposit + investment) enthusiasts is intensifying.

According to K-Bank on the 26th, the recent "5% Annual Fixed Deposit Special Offer" attracted 100,000 people within two days, resulting in the closure of the quota for existing customers. Since the 20th, K-Bank has been running a special fixed deposit promotion offering up to 5% annual interest for both existing and new customers. The offer closes once the number of applicants (100,000 existing customers and 25,000 new customers) is reached. Among them, 5,000 existing customers and 5,000 new customers are selected by lottery to receive a 5% interest rate preferential code.

When the winning customers enter the preferential interest rate code, they receive a base interest rate of 3.6% for six months plus a preferential rate of 1.4 percentage points, totaling a maximum of 5%. The subscription period is six months, and the maximum subscription limit per person is 10 million KRW. Early termination and re-subscription are not allowed. If one deposits the full 10 million KRW limit, they can receive 211,500 KRW in after-tax interest after six months. This is the highest interest rate special offer in the banking sector amid a recent trend of declining deposit rates. A K-Bank official stated, "The quota for existing customers was filled and closed within two days as of the morning of the 22nd, and currently only the quota for new customers remains."

This situation arises because, unlike last year, high-interest deposit products have become rare this year. Deposits with interest rates in the 4% range are almost nonexistent at major commercial banks. At the end of last year, major commercial banks lowered deposit interest rates amid growing expectations of a U.S. Federal Reserve rate cut. According to disclosures by the Korea Federation of Banks, the fixed deposit interest rates (6-month term) at the five major banks?KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup?are in the mid-3% range, between 3.5% and 3.57%. High-interest products are also hard to find in the secondary financial sector. According to the Korea Federation of Savings Banks, the average fixed deposit interest rate (6-month term) nationwide at savings banks is 3.21%.

As factors that could raise deposit interest rates gradually diminish, demand to catch the "last train" is also being detected in the banking sector. The U.S. Federal Reserve has indicated it will cut rates three times this year, and there are forecasts that the Bank of Korea will also lower rates in the second half of the year. A representative from a commercial bank said, "Recently, more customers are subscribing to deposit products with terms of 2 to 3 years in anticipation of falling interest rates."