‘If you deposit 100 million, you will earn 5 million in annual interest’… 5% interest rate period for commercial bank time deposits

Woori, KB Kookmin, and NH Nonghyup deposit products, annual interest rates are more than 5%
Other commercial banks in the top 4% range are expected to enter the 5% range soon

In line with the trend of rapid rate hikes, commercial banks’ deposit rates are also rising one after the other. Some commercial banks offer deposit products with an annual interest rate of more than 5%.

According to the banking industry on the 14th, Woori Bank’s representative product, ‘Woori WON Plus Deposit’, provides an annual interest rate of 5.18% based on the maturity of one year from the previous day. This deposit product is a product linked to the market interest rate, and anyone can receive the highest interest rate without any special conditions.

Woori Bank’s representative deposit product ‘Woori WON Plus Deposit’ appears to have broken through the 5% annual mark first during the recent interest rate hike, as the relevant interest rate changes daily to reflect the market interest rate. However, on the morning of the 14th, the interest rate for this product dropped back to 4.98% p.a.

Kookmin Bank’s ‘KB STAR Time Deposit’ also applies an annual interest rate of 5.01% based on a maturity of one year from this day. ‘KB STAR Time Deposit’ reflects the market interest rate each week, and until last weekend, the annual interest rate rose from 4.96% to the 5% range as it fluctuated at the start of the week. NH Nonghyup Bank’s ‘NH Allone e Deposit’ also applies an annual interest rate of 5.1% to products with a maturity of one year from this day. This product is also a product that varies the interest rate by reflecting the market interest rate from day to day.

Meanwhile, interest rates on one-year deposit products in major commercial banks have remained at the level of 4% per annum, but since last weekend, they have risen to the level of 5% per annum. This means that if you deposit 100 million won in these products, you can withdraw about 5 million won in annual interest income alone.

According to the Consumer Portal of the Federation of Banks, among the one-year term deposit products, the interest rates that exceed 5% per annum are BNK Busan Bank’s ‘Special Time Deposit’ (5.4% per annum) and Jeonbuk Bank’s ‘JB123 Time’ . Deposit’ (5.3% per annum). ), Standard Chartered Bank’s ‘E-Green Save Deposit’ (5.1% annual rate), Jeju Bank’s ‘J Term Deposit’ (5.10% annual rate), and Kwangju Deposit Bank’s ‘Horatchacha Digital’ (5.0% annual rate ). Most of them were regional banks or foreign banks, and even these were able to receive the highest interest rate of more than 5% per annum only when certain conditions were met for the base interest rate.

In this situation, commercial banks such as Woori Bank, KB Kookmin Bank, and NH Nonghyup Bank have entered the market for time deposit products with an annual interest rate of 5%. This is due to the impact of the Bank of Korea’s successive base rate hikes. On the 12th of last month, as the Bank of Korea took its second major step in history, major commercial banks simultaneously raised interest rates on deposits and savings by 0.3 to 1 percentage point. In addition, from this day, the interest rates of Shinhan Bank’s ‘Smart Time Deposit’ and Hana Bank’s ‘Hana Time Deposit’ are 4.85% per annum, so it is expected that commercial bank time deposit products that exceed the interest rate annual of 5%. it will follow soon.

Reporter Park Joon-hee