▲ ATM booths of Kookmin, Nonghyup, Shinhan, and Woori banks lined up on a street
Major commercial banks are raising their deposit rates one after another.
Reflecting the rise in market interest rates, the competitiveness of deposit products is also on an upward trend.
According to the financial sector on the 10th, Hana Bank raised the 1-year maturity interest rate for its flagship time deposit product, "Hana Time Deposit," by 0.1 percentage points (p) from 3.2% to 3.3% per annum starting today.
Following its decision to raise the product's rate from 2.9% to 3.2% per annum in July, the bank has decided on an additional hike two months later.
A bank official explained that the rate was increased to reflect the recent rising trend in market interest rates.
Woori Bank also raised the interest rate on its flagship time deposit product, "WON Plus Deposit," by 0.2 percentage points from 3.2% to 3.4% per annum.
According to the Korea Federation of Banks, KB Kookmin Bank offered 3.2% for its "KB Star Time Deposit," Shinhan Bank offered 3.3% per annum for its "Shinhan My Plus Time Deposit," and NH Nonghyup Bank offered 3.25% per annum for its "NH Waltz Rotating Deposit II," with all five major banks currently selling deposits with rates in the 3% range.
As deposit rate hikes continue, the time deposit balances of these five major banks have swelled to around 1,000 trillion won since early last month.
The Bank of Korea announced the previous day that the deposit balances of domestic banks turned from a decrease of 30 trillion won in July to an increase of 100 billion won in August, noting that time deposits in particular grew by 20.3 trillion won, maintaining an upward trend following the previous month (+42.3 trillion won).
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.