When Extra Funds Appear, They Flock Here Instead of Stocks... "High Interest Rates at Last" as 21 Trillion Won Pours In [Real Investment Tech]

Savvy Savers Flock to 3% Deposits
High-Interest Installment Savings Launched at Major Banks
21 Trillion Won Pours into Deposits in Two Months
Deposits Remain the Preferred Choice

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Banks have been raising deposit interest rates to prevent capital outflows, prompting increased activity among savvy investors. As the stock market continues to thrive and the 'money move' phenomenon-where funds flow into the capital markets-persists, banks have engaged in fierce competition to offer higher deposit rates. Currently, it is not difficult to find deposit products with interest rates in the 3% range at major commercial banks, and a variety of high-interest installment savings products are also being introduced.

The Return of 3% Bank Deposits

According to the Korea Federation of Banks on December 10, the highest interest rates for flagship one-year time deposit products at the five major banks-KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup-stood at 2.80% to 3.00% per annum as of December 9. Specifically, KB Kookmin Bank's 'KB Star Time Deposit' offers 2.85% per annum, Shinhan Bank's 'SOL Convenient Time Deposit' offers 2.8%, Hana Bank's 'Hana Time Deposit' offers 2.85%, Woori Bank's 'WON Plus Deposit' offers 2.85%, and Nonghyup Bank's 'NH All-One e-Deposit' offers 3.0%. Compared to early October, when time deposit rates hovered around 2.5%, this represents an increase of approximately 0.3 to 0.5 percentage points.

In addition, banks are continuously launching new products with interest rates in the 3% range. SC First Bank's 'e-Green Save Deposit' offers a maximum rate of 3.2%. Recently, Shinhan Bank raised the maximum rate on its 'Shinhan My Plus Time Deposit' by 0.3 percentage points, from 2.8% to 3.1% per annum. For a 12-month maturity, the base rate is 2.9% per annum, with an additional 0.2 percentage points available if preferential conditions are met. KB Kookmin Bank also announced the additional sale of its '2025 Second Group Purchase Time Deposit,' which offers a maximum rate of 3% per annum. The total subscription limit is 3 trillion won, and customers can sign up until December 19. If the limit is reached, sales will end early.

Woori Bank's 'Woori First Transaction Preferential Time Deposit' also offers a maximum rate of 3.0% per annum. Suhyup Bank's 'Sh First Meeting Preferential Deposit' and 'Hey Time Deposit' offer maximum rates of 3.1% and 3.0% per annum, respectively. Jeonbuk Bank's JB123 Time Deposit also offers a maximum rate of 3.1% per annum.

Internet-only banks have also recently raised their deposit rates, with the highest rates now in the upper 2% range. K Bank's 'Code K Time Deposit' offers 2.86%, while Kakao Bank's time deposit stands at 2.85%.

Double-Digit Interest Rates for Installment Savings at Commercial Banks

High-interest installment savings products are also being launched one after another. Woori Bank recently introduced the 'Exciting Lucky Installment Savings,' which offers a maximum annual interest rate of 12.5% if the customer wins all five lottery draws. This product allows monthly deposits of up to 500,000 won for six months. The base rate is 2.5% per annum, with an additional 2 percentage points added each time a lucky card is drawn.

KB Kookmin Bank has also recently relaunched its 'KB I Love Installment Savings,' which offers a maximum rate of 10% per annum. This is a flexible installment savings product for parents aged 19 or older who are raising children, allowing monthly deposits from 10,000 won to 300,000 won.

Back to Deposits... 21 Trillion Won Flows In Over Two Months

According to the financial sector, the balance of time deposits at the five major banks-Kookmin, Shinhan, Hana, Woori, and Nonghyup-stood at 971.9897 trillion won as of the end of November. This represents an increase of 6.4208 trillion won compared to the previous month (965.5689 trillion won). The balance of time deposits has increased for two consecutive months, rising by 21.2882 trillion won from the end of September (950.7015 trillion won). The total deposit balance at the five major banks reached 2,168.9095 trillion won at the end of last month, up 17.7289 trillion won from the end of October (2,151.1806 trillion won).

The balance of installment savings at the five major banks also increased by 535.6 billion won from the previous month to 46.2948 trillion won. The balance of demand deposits, including money market deposit accounts (MMDA) classified as investment-ready funds, increased by 6.3968 trillion won from the previous month to 654.2532 trillion won. This appears to be a partial recovery as volatility in the domestic stock market has increased.

In fact, a recent survey showed that people prefer to put surplus funds in bank deposits rather than stock accounts. According to the '2025 Household Financial Welfare Survey' released by the National Data Agency on December 4, 87.3% of respondents said they preferred to invest their financial assets in deposits, making it the overwhelming top choice. Stocks (9.6%) and private pensions (1.7%) followed.

Second-Tier Financial Institutions Also Raising Rates

Savings banks, which had previously been passive in attracting deposits, have also recently raised their interest rates. According to the Korea Federation of Savings Banks, the average interest rate for 12-month time deposits at 79 savings banks nationwide was 2.86% as of the previous day. This is an increase of 0.17 percentage points from the previous month (2.69%).

Of the 303 products disclosed (based on a 12-month term), 107 products offered interest rates of 3% or higher. This is a significant increase compared to just a month ago, when there were no products in the 3% range.