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.

Attention is focusing on whether a so-called "reverse money movement" will occur, with funds shifting from stock investments to deposit savings.

According to the financial sector today (the 10th), Hana Bank raised the interest rate for its flagship term deposit product, "Hana Term Deposit," with a one-year maturity from 3.2 percent to 3.3 percent per annum, an increase of 0.1 percentage points (p).

Following the hike of the product's rate from 2.9 percent to 3.4 percent per annum in July, the bank decided on an additional increase two months later.

A Hana Bank official explained that the rate was raised to reflect recent rising trends in market interest rates.

Woori Bank also raised the interest rate for its flagship term deposit product, "WON Plus Deposit," from 3.2 percent to 3.4 percent per annum, an increase of 0.2 percentage points.

NH Nonghyup Bank is likewise raising the interest rates for its "NH All One e Deposit" term deposits by 0.2 to 0.3 percentage points starting on the 11th.

Rates will increase by 0.2 percentage points for products with maturities of 6 months or more and less than 2 years, and by 0.3 percentage points for products with maturities of 2 years or more and less than 3 years.

An official from Nonghyup Bank similarly explained, "We reflected actual market interest rates, including the Bank of Korea's base rate hike."

According to the Korea Federation of Banks, the top five commercial banks are currently selling deposits with rates in the 3 percent range, with KB Kookmin Bank offering 3.2 percent for its "KB Star Term Deposit" and Shinhan Bank offering 3.3 percent for its "Shinhan My Plus Term Deposit."

As deposit rate hikes continue, the term deposit balances of these top five banks have swelled to around 1 trillion won since the beginning of last month.

The Bank of Korea announced the previous day that domestic bank deposit balances turned from a decrease of 30 trillion won in July to an increase of 100 billion won in August, noting in particular that term deposits grew by 20.3 trillion won, maintaining an upward trend following the previous month (+42.3 trillion won).

Projections are also emerging that rising interest rates will slow the influx of individual funds into the stock market and increase household term deposits.

KB Securities analyzed in a report today, "Although it is still too early to jump to conclusions, the upward trend in household deposits is likely to strengthen going forward, while the speed and intensity of fund inflows into the stock market are highly likely to slow down further."

KB Securities diagnosed that while deposits decreased sharply earlier this year and some funds moved into stocks and funds, fund flows have shifted, with deposits turning back to an upward trend starting last month.

(File Photo: Yonhap News)