Big Sums Flowing into Savings and Deposits... Where to Find '8% Savings'? [AldonSseulJap]

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As the possibility of interest rate cuts grows,

a special savings product offering an incredible maximum 8% interest rate has been launched.

Is it from a secondary financial institution?

No.

This is a savings product from a primary financial institution offering a base interest rate of 3.5%, with preferential rates that can raise it up to 8%.

If you are a youth aged 39 or younger, this is a savings product you must not miss. Let me introduce it to you.

Why you should catch the 'last train' now

[Image source=AP Yonhap News]

Last month, the United States cut its benchmark interest rate for the first time in four and a half years.

Following the US, South Korea is also approaching a period of interest rate cuts.

On the 11th, the Bank of Korea's Monetary Policy Committee will hold a meeting to decide whether to maintain the current interest rate (3.50%) or adjust it.

Economic researchers mostly expect that the benchmark interest rate will be cut at the October Monetary Policy Committee meeting, the first since the US's big cut.

Dongnak Gong, a researcher at Daishin Securities, said, "We expect the October Monetary Policy Committee to cut the current benchmark rate from 3.50% to 3.25%, a 25 basis point (0.25%) reduction," adding, "The monetary authorities have already indicated for some time that inflation has entered a stable zone, and the domestic and foreign interest rate gap, which had been an obstacle to cuts, has significantly narrowed following the Fed's rate cut."

Ahn Yeha, a researcher at Kiwoom Securities, also said, "We expect the benchmark rate to be cut by 25 basis points to 3.25% at the October Monetary Policy Committee," and analyzed, "Considering recent changes in the stance of Bank of Korea officials, it is more likely that the rate cut will be implemented in October rather than postponed to November."

Interest rates falling, stock market shaky... large sums flowing into savings and deposits

[Image source=Yonhap News]

With the majority expecting the Bank of Korea to cut the benchmark interest rate,

and the stock market continuing its bearish trend,

liquidity in the market is flowing into savings and deposits.

According to the Korea Exchange, the average daily trading value of the KOSPI and KOSDAQ markets last month was , down 8% from the previous month (August), marking the lowest level of the year.

On the other hand, bank savings and deposit balances have increased for six consecutive months.

According to financial authorities, as of the end of last month, the balance of time deposits at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) was ?930.4713 trillion, up ?4.8054 trillion from the end of the previous month (August).

The balance of installment savings was ?38.074 trillion, an increase of ?1.2157 trillion over the same period.

Time deposits have increased for five consecutive months since May, and installment savings have increased for six consecutive months since April.

If you are 38 or younger, don't miss this savings product... up to 8%

Among these, Shinhan Bank's 'Cheongnyeon Cheoeum Jeokgeum' (Youth First Savings) is attracting attention.

This savings product used to offer a maximum interest rate of 6.5%,

but has been raised to a maximum annual rate of 8% to support young customers financially.

The base interest rate is 3.5% per annum (12 months, before tax),

with a preferential rate of 2% per annum, and a special interest rate of 2.5% per annum for the 42nd anniversary event, providing a maximum annual interest rate of 8%.

However, the 42nd anniversary special interest rate is available only to customers who have not held any savings, deposits, or subscription accounts at Shinhan Bank in the past year, and is limited to the first 200,000 accounts on a first-come, first-served basis.

The sales period is until December 19, but note that if the quota is exhausted or the event period ends, the interest rate will be changed to 1% per annum without prior notice.

Since this is a savings product for 'youth',

only those aged 18 to 39 can apply, and only one account per person is allowed.

Applications can be made both via mobile and by visiting branches.

You can freely deposit from .

If you deposit ?300,000 every month for 12 months and meet all preferential rate conditions to receive 8% interest,

you will receive interest of ?156,000 on a principal of ?3,600,000, and after 15.4% withholding tax, the net interest will be ?131,976.

In other words, you will receive a total of ?3,731,976 at maturity.

Additionally, KB Star Savings also offers a maximum annual interest rate of 8%.

The base interest rate is 2% per annum (12 months, before tax), and the sales limit is 100,000 accounts.

You can save freely from .

However, note that this is only available to first-time customers, long-term inactive customers, or those who have not logged into KB Star Banking for more than six months as of the end of the month prior to the new savings account opening.

Among internet banks, there is also a savings product with a high base interest rate of 3.7%.

This is K-Bank's 'Main Transaction Preferential Free Savings'.

It offers a base rate of 3.70% per annum (12 months, before tax) with a maximum of 4.3%.

The term ranges from 6 to 36 months.

You can freely deposit from ?1,000 up to ?3,000,000, and it is easy to apply via the mobile application (app).

Compared to other banks' high-interest savings products, the preferential rate conditions are relatively simple.

If you have salary transfer or automatic telecom bill payment for more than 3 months, you get a maximum preferential rate of 0.6% per annum,

and if you use a check card for more than ?200,000 per month for 3 months during the performance period, an additional 0.3% preferential rate applies.

The longer the subscription period, the higher the maximum interest rate:

4.3% for 12 months, 4.35% for 24 months, and 4.4% for 36 months or more.

Usually, when interest rates fall, savings and deposit rates are not high, so funds tend to flow into investments like stocks or real estate that can yield higher returns.

However, with the stock market showing a bearish trend and strong loan regulations to block gap investments making real estate investment difficult,

it is unusual and interesting to see large sums of money flowing into savings and deposits.

Following the flow of money like this can provide insights into the economy and also help discover investment opportunities.

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