Commercial Banks Continue to Lower Deposit Interest Rates... NH Nonghyup Cuts Up to 0.55%P

Woori Bank Also Lowers Deposit Interest Rates by 0.2 Percentage Points

Since 2018 until June of this year, a total of 14,426 ATMs have been removed from banks over approximately six years. On the 24th, ATMs from commercial banks are installed on a street in Seoul. Banks are rapidly withdrawing ATMs, citing maintenance costs such as ATM management and heating and cooling expenses. Photo by Jo Yongjun jun21@

Commercial banks are consecutively lowering deposit interest rates in response to the Bank of Korea's base rate cut. The Bank of Korea reduced the base rate by 0.25 percentage points (P) on the 11th.

According to the financial sector on the 23rd, NH Nonghyup Bank will lower fixed deposit interest rates by 0.15?0.40 percentage points, installment savings interest rates by 0.25?0.55 percentage points, and subscription savings and long-term savings interest rates by 0.25 percentage points each.

Woori Bank is also lowering deposit interest rates by 0.2 percentage points while planning to increase the sales limit from 850,000 accounts to 900,000 accounts. Additionally, to strengthen household loan management, starting from the 25th, the preferential interest rates for refinancing credit loan products will be reduced by 1.0?1.9 percentage points. A representative from a commercial bank explained, "The deposit interest rates were adjusted to reflect the actual market interest rates following the Bank of Korea's base rate cut."

Besides NH Nonghyup Bank and Woori Bank, other commercial banks are also reportedly reviewing downward adjustments to deposit interest rates in response to the base rate cut.