Amid a steady loan interest rate due to strengthened household loan management policies, banks have lowered deposit and savings interest rates following the Bank of Korea's base rate cut.
On the 1st, Hana Bank announced it would reduce the base interest rates on 11 deposit products by 0.05 to 0.25 percentage points.
Specifically, the monthly compound savings account's 1-year base rate will be lowered from 3.35% to 3.30%, a 0.05 percentage point decrease. The 1-year base rate for the 369 fixed deposit will drop from 3.00% to 2.80%, a 0.20 percentage point reduction.
A Hana Bank representative explained, "This is due to the Bank of Korea's base rate cut and the decline in market interest rates."
On the same day, foreign bank SC Jeil Bank and internet-only bank Toss Bank also simultaneously lowered their deposit product interest rates. Although rates vary by product, fixed deposits will be reduced by up to 0.30 percentage points, installment savings by up to 0.50 percentage points, demand deposits by up to 0.80 percentage points, and early withdrawal rates by up to 0.20 percentage points.
Toss Bank also plans to lower the interest rate on the "Toss Bank Account" by 0.3 percentage points on the same day.
Woori Bank also reduced the interest rate on its Woori First installment savings by 0.2 percentage points starting that day.
Earlier, NH Nonghyup Bank lowered fixed deposit interest rates by up to 0.4 percentage points, installment savings by up to 0.55 percentage points, and subscription savings and tax-saving savings by 0.25 percentage points each, starting from the 23rd of last month.
Regional banks BNK Busan Bank and BNK Gyeongnam Bank also adjusted their deposit interest rates downward between the 17th and 18th of last month.
KB Kookmin Bank and Shinhan Bank are also reviewing reductions in deposit and savings product interest rates.
Meanwhile, this contrasts with the loan interest rates, which have not declined due to the strengthened household debt management policy. As of that day, the fixed mortgage loan rates (5-year bank bonds) of the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) ranged from 3.75% to 6.15%. Compared to the end of September (3.64% to 6.15%), the lower end rose by more than 0.1 percentage points, while the upper end remained unchanged.
As the gap between deposit and loan interest rates widens, the banking sector's profits in the third quarter of this year recorded an all-time high, and interest income for the banking sector is also expected to reach a record high by the end of this year.
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